Investor sentiment in Geregu Power Plc has markedly improved as the stock is up 17% in a week.
After Geregu’s share price gain to ₦246, the stock trades at a trailing P/E ratio of 60.6x.
However, investors don’t seem fazed as the stock was limit up 10% in yesterday’s trading.
Analysts say investors are reacting positively to news that the Fund for Export Development in Africa (FEDA) has taken a 5% stake in Geregu Power in a deal that was completed on the Nigeria Exchange Group (NGX).
FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank).
The deal is valued at around N28 billion based on Geregus Power closing share price of N224/share on the NGX.