Financial Energy Review
Africa Capital Alliance’s (ACA) CAPE IV fund has divested 0.57% of its shareholding in Aradel Holdings, a sale valued at N19.8 billion. The transaction occurred over three days—October 14, 15, and 16—during which CAPE IV sold 24.717 million Aradel shares at an average price of N802.99 per share.
Following this sale, ACA’s stake in Aradel dropped from 16.49% to 15.92%, though the fund remains the company’s largest shareholder. It is unclear whether ACA plans a full exit or will retain its stake in the company. According to a corporate disclosure on the Nigerian Exchange (NGX), the sale was aimed at providing liquidity for the recent listing of Aradel shares on the exchange.
Before the listing, Aradel had over 1,800 shareholders, with a free float of 64.32%, while majority shareholders controlled 35.68% of the company. However, ACA CAPE IV’s sell-off has contributed to a sharp decline in Aradel’s stock price. After an initial surge to N820 within the first two days of listing, the share price fell by 24%, closing at N625.40 as of October 18.
This sale has had a significant impact on Aradel’s market performance, with its stock dropping by 11% from the initial listing price of N702.69. Market analysts are closely watching ACA’s next move as uncertainty surrounds its future involvement with Aradel.
