Aradel Holdings Plans to List on NGX in 2024 - Ladi Jadesimi

The Chairman of Aradel Holdings,  Mr Ladi Jadesimi, has announced that the firm plans to maintain its current growth trajectory and also plans to list on the Nigerian Exchange this year.

Jadesimi made this announcement in a recently published 2023 annual report and accounts of the integrated indigenous energy company.

Aradel Holdings Plc is a trader on the NASD OTC Exchange. In 2023, the company did well, with a capital appreciation of 450.6% to N1,089 per share from N197.8 at the start of the year.

"Our strategic focus for 2024 is to make sure the company maintains its current growth trajectory, gets successfully listed on the Nigerian Exchange's main board, keeps up the development and optimisation of its assets, and implements the succession plan for the company's directors in accordance with the Companies and Allied Matters Act 2020 and the Nigerian Code of Corporate Governance."

"We also anticipate the completion of our PMS train, which will enhance our output levels, generate more income, and stimulate value creation. We want to reach Omerelu, which has enormous potential economic value, and extend our operational reach beyond Ogbele. Our strategic focus for the upcoming year continues to include enhancing our employee value proposition," he stated. 

Jadesimi stated that the company's visibility and access to capital have increased since it was listed.

"To achieve this goal, we are 'cultivating the culture of a listed company' by evaluating and revising our policies to reflect changing standards and comply with laws, rules, and industry best practices; improving our equity story through more disclosures; utilising a variety of messaging tools to make sure our message is optimised to meet the needs of our target audience; and streamlining our various channels of communication to include a more comprehensive and investor-friendly website, social media pages, etc.

He clarified, "As a result of these, we have improved transparency, enhanced trust and confidence in the minds of the investing community, and an enhanced understanding and appreciation of the Aradel equity story and investment proposition. Our stock has performed exceptionally well and is currently listed on the NASD-OTC Exchange."

Following the NCCG's rules, he said that directors who have served longer than their allotted term on the board will start to disengage after the listing process is finished.

He added that the succession planning process was seen by the company's board of directors as an essential part of good board governance, which is closely related to effective management and the successful implementation of the business plan.  

The holding company's upcoming annual general meeting in June is scheduled to include a vote by shareholders on the proposal.

The proposed listing by introduction will reduce the nominal value of each of the current ordinary shares in the company's share capital from N10 to N0.50.

Meanwhile, the Chief Executive Officer of Aradel Holding, Adegbite Falade, noted that the company could maximise its liquidity by managing its debt and generating substantial organic cash flow in 2023.

“By scaling up our operations across all our business segments and streamlining our processes, we successfully reduced our unit operating costs. We optimised our liquidity, benefiting from strong organic cash flow generation coupled with debt management. This prudent financial management underpins a positive financial outlook for our company, signalling a trajectory of sustained growth and stability,” he said.

Falade also said that the business was partnering with outside partners to provide solar-powered mini-grid solutions to communities without electricity from the grid.

Aradel Holdings' total revenue increased by 234.5 percent to N221.1 billion in 2023 from N66.1 billion the year before, primarily due to the company's crude oil exports, which brought in N108.4 billion. Sales of refined products and the gas business brought in N102.5 billion and N10.2 billion, respectively.