Aradel Holdings market value plummets by N960 billion two weeks after listing 

Initially valued at N3.03 trillion with a listing price of N702.69 per share, the company’s market capitalization briefly surged to N3.35 trillion on its debut.

However, it now stands at approximately N2.39 trillion, reflecting a staggering decline of N662.97 billion as of October 30th, 2024.

The market cap has fallen by about N960 billion since it hit an all-time value of N3.35 billion

Upon listing, Aradel Holdings captured significant investor attention. With a trading volume exceeding 18 million shares on its first day, the stock closed at N820, marking a 6.90% gain.

Naijaonpoint Analysts suggest the swift decline in Aradel Holdings’ share price could be due to profit-taking by short-term investors, who may have capitalized on gains made within the first two days of listing.

These movements reflect typical market behaviour, where early investors, particularly day and swing traders, secure quick profits in high-demand IPOs.

Additionally, long-term investors appear cautious, potentially due to liquidity concerns, as they assess the stock’s performance in a broader market context.

Before its NGX debut, Aradel Holdings had built a strong performance history on the NASD OTC market. Listed earlier in 2024 at N1,089 per share, the stock skyrocketed to N9,867.38 by September 4, highlighting considerable demand among OTC investors.

Aradel’s decision to transition to the NGX Main Board is part of a strategic effort to gain broader exposure and bolster its position within Nigeria’s energy sector, where it is poised for further growth.

Trading Patterns and Market Reactions

Aradel’s debut on NGX was marked by notable volatility. On its first trading day, the stock gained 10%, closing at N772.90 with over 18 million shares traded, amounting to N14.46 trillion in trading value.

Yet, this recovery was short-lived as the stock returned to a flat close at N550.10 in subsequent trading, underscoring investor concerns regarding sustained price stability.