Falade: After NGX listing, plan is to diversify, remove single location risk

Aradel Holdings, a key player in the Nigerian energy sector, is set to embark on a new phase of growth and expansion following its successful listing on the Nigerian Exchange. The Managing Director and CEO of Aradel Holdings, Adegbite Falade, revealed in an interview with CNBC Africa that the company's strategy moving forward is to diversify its assets and mitigate single location risk. Falade highlighted the acquisition of Olo and Olo West as part of the company's diversification plan, emphasizing the importance of expanding their footprint and enhancing shareholder value. Falade expressed optimism about the future of the company, stating that they are focused on increasing oil and gas production, expanding their renewable energy portfolio, and scaling up their refinery operations. He underscored the importance of driving financial performance and maximizing returns for shareholders while contributing to Nigeria's energy security agenda. The journey to becoming a publicly listed company has been a long one for Aradel Holdings, spanning over 11 years. Initially listed on the NASD, the company recently made the transition to the NGX through a listing by introduction. Falade explained that while they are not currently planning to issue fresh shares via an IPO, it remains a possibility in the future when the need for capital arises. He emphasized that any capital raised would be utilized for strategic acquisitions and developments that align with the company's growth objectives. At present, Aradel Holdings boasts a robust financial position, generating substantial cash flow with minimal leverage. The decision to list on the NGX was primarily aimed at enhancing liquidity and providing existing shareholders with a platform for trading. While the company currently has no immediate need for additional capital, Falade emphasized that an IPO may be considered when the timing is right and the requirement arises. In conclusion, Aradel Holdings' post-listing strategy revolves around diversification, expansion, and sustainable growth. With a strong focus on operational excellence and value creation, the company is poised to capitalize on emerging opportunities in the energy sector while delivering long-term benefits to its stakeholders.