DEAP Capital shares rise over 200% as investors react to strategic partnership and balance-sheet restructuring

Shares of DEAP Capital Management & Trust Plc have surged more than 200 per cent month-to-date on the Nigerian Exchange (NGX), driven by heightened trading activity and renewed investor optimism, industry sources confirmed in Lagos.

Also read: DEAP Capital launches Africa minerals and metals financing

The stock opened January at N1.89 and climbed to N5.90 by 21 January, with intraday trading on 22 January approaching the N6.00 mark.

Analysts attribute the rally to a memorandum of understanding (MoU) signed with Banklink Africa’s Equity Fund II, aimed at financing minerals and metals projects across the continent.

“The partnership is a significant confidence booster for investors,” said an NGX market analyst.

“It signals DEAP Capital’s strategic pivot towards profitable investment banking activities with exposure to high-demand sectors.”

The MoU also covers projects linked to digitalisation, energy transition, industrial manufacturing, and advanced technologies, reinforcing bullish sentiment that began in late December 2025.

Trading activity intensified in the third week of January, with approximately 117 million shares exchanged.

Despite the rally, DEAP Capital’s financial statements for the year ended September 2025 highlight the challenges ahead.

The company reported a pre-tax loss of N28.8 million and accumulated losses of N5.2 billion, resulting in a negative equity position of N2.3 billion.

To stabilise its balance sheet, DEAP Capital executed debt-to-equity conversions, issuing 1.499 billion ordinary shares at N1.35 per share to non-bank creditors owed a collective N2.02 billion.

Management said ongoing strategic investment discussions could translate into binding agreements, potentially improving funding, profitability, and investor confidence.

The company also reached a settlement with Zenith Bank, reducing a long-standing loan from N1.88 billion to N400 million.

DEAP Capital operates across fund management, capital markets, mortgage banking, and oil and gas services.

Asset Management Corporation of Nigeria (AMCON) remains the largest shareholder with a 16.6 per cent stake as of September 2025.

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Investors are now closely monitoring the company’s ability to convert strategic partnerships and balance-sheet restructuring into sustained operational gains.