Aradel Holdings Falls as Shareholder Sells to Boost Liquidity
Aradel Holdings market value fell by about 10% to N562.90 in the equities market as investors’ appetite for the oil stock remained low while its existing shareholders reduced holdings to provide liquidity.
The oil and gas stock plunged to N625 per share as investors continued to weigh entry points into the newly listed company on the Nigerian Exchange. Aradel Holdings was listed at N702.69 per share last week, lifting the equities market capitalisation of the Nigerian Exchange by N3.4 trillion.
The company’s market value has crashed to N2.445 trillion on the Nigerian Exchange due to negative price movement that started shortly after it was listed by introduction.
The stock has lost about 20% since last week. Initially, the stock picked up but the momentum has slowed down with activities skewing to sell side. This was because influential shareholder dropped huge volume to boost ARADEL liquidity.
In a disclosure, Capital Alliance Private Equity IV Limited, shareholder of the company holding more than 5% sold 24,717,353 shares at the average rate of N802.99.
This sale of shares happened in order to provide liquidity for the listing of Aradel Shares on the Nigerian Exchange Limited, according to a disclosure. #Aradel Holdings Falls as Shareholder Sells to Boost Liquidity NAFDAC Destroys Fake Products Worth N43bn in Ibadan
