Transcorp Power has debuted on the Nigerian Exchange Limited (NGX), boasting a market capitalization of N1.8 trillion.
The company is a member of the Transcorp Group, which includes Transcorp Hotel, equally listed as a separate entity.
According to a statement, it was revealed that the company aims to offer 7.5 billion ordinary shares, of 50 kobo each, at a listing price of N240.00 per share.
The listing ceremony is set to take place on March 4th at the premises of the Nigerian Exchange Limited.
The statement further reads: We are delighted to announce that the Facts Behind the Listing and Closing Gong Ceremony of Transcorp Power Plc to commemorate the Listing by Introduction of 7,500,000,000 Ordinary Shares of 50 kobo each at N240.00 per share on Nigerian Exchange Limited is scheduled for Monday, 04 March 2024”
Recall in April 2023, Tony Elumelu, Transcorp’s chairman stated that there were plans to list Transcorp Power as a separate entity within 5 years.
Mr. Elumelu made this comment when he was asked about rumors of a potential spin-off of Transcorp Power Plc following a board resolution passed after its Annual General Meeting (AGM).
Elumelu denied the rumors that he planned to list Transcorp Power as a separate institution on the Exchange, stating that the conglomerate was in it for the long term.
He said, “No (we are not listing), I hear that rumor from time to time, especially after some competing institutions were listed on the Exchange. No, we are long-term players, we want to grow more and significant value in the power sector.”
He, however, proceeded to confirm that a spin-off was on the cards, albeit in 5 years, on the condition that transmission lines and challenges with gas would have been fixed.
“We are looking at about 5 years from now to list Transcorp Power because we believe the transmission lines would have been fixed and the gas supply to the power sector would have improved significantly,” Elumelu said.
At an expected valuation of N1.8 trillion, Transcorp Power will become the second most valuable power company on the exchange and will automatically join the SWOOTs (Stocks Worth Over One Trillion Naira).
Of great importance to note is that, the most valuable power company based on market capitalization is Geregu Power with a market cap of N2.4 trillion.
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