Aradel stock soars above listing price on Shell-Renaissance deal
- Oil firm overtakes BUA Cement as six most valuable stock
Aradel Holdings shares jumped by the maximum limit of 10 percent on Thursday, a day after the announcement of ministerial approval for Shell’s sale of its Nigeria onshore subsidiary to Renaissance Africa Energy Company.
The indigenous oil operator emerged the third-biggest riser at the close of trading at the Nigerian Exchange Limited (NGX) as its share price rose further to N730.40, compared to N702.69 at which it was listed on October 14.
Aradel is part of Renaissance, a consortium comprising five firms including FIRST E&P, Waltersmith, ND Western and Petrolin.
Its share price had plunged to a record low of N445.60 on November 1, days after the Nigerian Upstream Petroleum Regulatory Commission said the Shell-Renaissance deal “not scale the regulatory test”.
But it has been on the rise since December 11, when it was announced that Aradel had agreed to acquire 5.14% equity interest in Chappal Energies Mauritius Limited. Its stock has gained 57% since then, while its market capitalisation surged to N3.17 trillion on Thursday from N2.02 trillion on December 10, according to NGX data compiled by Markets Reporters.
Aradel’s market value has surged 63.4 percent since November 1 when it plunged to N1.94 trillion from N3.05 trillion on listing day. It overtook BUA Cement on Thursday as the sixth most valuable company on the NGX.
