Japaul Nigeria Plc has started reaping the benefit of its recent announcement on the injection of fresh $350million from foreign investors in the firm.
Japaul Oil and Gas Nigeria Plc, recently announced that the company has entered into a binding commitment with Milost Global incorporated, an American equity firm, with head office in New York.
According to the company, the fresh fund’s injection into the company falls in line with the mandate received from shareholders at the 30th June, 2016, Annual General Meeting of the firm.
The facility is “$250million equity injection and $100m convertible notes, this will help to bail the company from the present financial position” the company said.
Meanwhile, the company’ share price on Tuesday peaked at 50 kobo, following a descent to as low as below 30 kobo per share.
Analysis of market report showed that Japauloil previously closed at N 0.46 per share and opened trade Tuesday at N0.48 per share, closed trade yesterday at N0.50 per share, a development experts said was driven by anticipation of improvement in the company’s fortunes.
Meanwhile, a stockbroker ,who spoke on condition of anonymity said that the current upsurge in the company’s equity price though could be driven by the report of new investment in the company, the upsurge in price may be bubble by investors keen on taking profit from equity price growth.
According to him, the company’s shares for the past five years remained on offer and, the current upsurge in the demand may be driven by action of investors who decided to take higher risk.
“For me, it is high risk, because when the investors now will start taking profit, maybe when the price must have reached 60 kobo, many others would be caught unawares” the broker said, adding that many people are still watching development in the company with reservation and not in a hurry to join the herd movement on the stock.