Lagos, Nigeria – Africa Capital Alliance’s CAPE IV has divested approximately 0.57% of its shareholding in Aradel Holdings, resulting in a N19.8 billion sale. This transaction, conducted over three days from October 14 to 16, involved the sale of about 24.717 million shares at an average price of N802.99.
Following this sale, ACA’s stake in Aradel has decreased from 16.49% to 15.92%, although it remains the largest shareholder in the company. The rationale for the share sale, according to a corporate disclosure on the Nigerian Exchange (NGX) website, was to “provide liquidity for the listing of Aradel shares on the NGX.”
Prior to its listing, Aradel had over 1,800 shareholders with a free float of 64.32%, while majority shareholders controlled 35.68% of the company. The recent sell-off has contributed to a decline in Aradel’s stock price, which fell by 11% to N625.40 from its initial listing price of N702.69. After experiencing a brief surge to N820 shortly after listing, the stock has since dropped approximately 24% by the end of the week.
It remains unclear whether ACA will exit its investment in Aradel or continue its stake in the company as the market adjusts.