Africa Capital Alliance Sells Off ₦19.8bn Aradel Holdings Shares

Africa Capital Alliance (ACA) has offloaded ₦19.8 billion worth of shares in Aradel Holdings, reducing its stake in the company from 16.49 percent to 15.92 percent.

The private equity fund’s CAPE IV, which holds the largest shareholding in Aradel, executed the sale over three days – October 14, 15, and 16 – disposing of approximately 24.717 million shares at an average price of ₦802.99 per share.

According to a corporate disclosure on the Nigerian Exchange (NGX) website, ACA’s partial divestment was aimed at “providing liquidity for the listing of Aradel shares on the NGX.” However, it remains unclear if ACA plans a full exit from the company or if it will continue to maintain its position as the largest shareholder.

Prior to its listing on the NGX, Aradel Holdings had over 1,800 shareholders with a free float of 64.32 percent, while majority shareholders controlled 35.68 percent of the company. Despite ACA’s sale, it retains its position as the largest shareholder of Aradel Holdings.

The sell-off played a significant role in the sharp decline in Aradel’s stock price, which dropped by 11 percent to ₦625.40, down from its initial listing price of ₦702.69. While Aradel’s shares saw an initial surge, reaching ₦820 within two days of listing, the stock has since experienced a steady decline, shedding approximately 24 percent of its value by the close of the trading week on October 18.

Investors will be watching closely to see how ACA’s strategic moves and the broader market will impact Aradel’s stock in the coming weeks.