Transcorp Power lists 7.5bn shares on NGX

Transcorp Power Plc, a subsidiary of Transnational Corporation Plc (Transcorp Group), on Monday listed 7.5 billion ordinary shares at N240 per share of 50k each on the main board of the Nigerian Exchange Ltd. (NGX).

The listing brings the company total market capitalisation on NGX to N1.8 trillion.

The listing was announced at the NGX Closing Gong for the electricity generating company and presentation of the Facts Behind the Figure of the firm, led by its Group Chairman, Mr Tony Elumelu in Lagos.

It was reported that the Transcorp Power ranked second most traded stock on the Exchange at the close of trading with 40 million shares valued at N10.56 billion to close to N264.00 per share.

In his presentation, Mr Peter Ikenga, Managing Director/Chief Executive Officer of the company, said that the listing was to provide a platform through which new investors from the public can be admitted into the firm.

Ikenga stated that this would diversify existing shareholders base and position the company for access to a larger pool of capital raising options.

He noted that the listing, which is an avenue to contribute to the growth of the NGX and the Nigerian capital markets, would further enhance Transcorp Power’s brand visibility and awareness.

The managing director said that the power company had installed 972 Megawatts capacity, 18 gas turbines and powering 10 million homes, hospitals and industries across Nigeria.

According to him, the firm, in the long term, targets to power one in four households and industries in Nigeria, as well as become a leading power company with an annual revenue in excess of N500 billion by 2031.

He revealed that the company recorded N142.1 billion as revenue in its year 2023 unaudited financial report, N52.8 billion for Profit After Tax(PBT), N223.4 billion in total asset and paid N58.7 billion to its shareholders.

Ikenga states that Transcorp Power’s revenue grew impressively over the past five years, driven by a surge in energy delivery and capacity charge, coupled with the lucrative expansion of the company.

“With a 972MW capacity, Transcorp Power accounts for seven per cent of Nigeria’s power generation capacity, yet currently generates 10 per cent of Nigeria’s power with existing assets, with capacity to contribute further,” he said.

In his address, Alhaji Umaru Kwairanga, Group Chairman, NGX Group Plc, said that the listing of Transcorp Power shares was a testament to the resilience, innovation, and excellence within the Nigeria’s power sector.

Kwairanga stated that the listing also underscores NGX’s pivotal role in driving economic growth and development in the nation.

“It is a historic day as listings of companies with market capitalisation in excess of N1trillion do not happen frequently.

“With a market capitalisation exceeding one trillion naira, Transcorp Power Plc’s entry into the public market represents a significant milestone, highlighting the increasing confidence and maturity of our capital market.

“It is a clear signal of the transformative journey our energy sector has embarked upon. Thanks to the Electric Power Sector Reform Act and subsequent market liberalisation,” he said.

According to him, the success of Transcorp Power is a testament to the visionary leadership of Elumelu.

Kwairanga stated that Elumelu’s strategic investments have not only elevated the company but have also set a new standard for excellence in the capital market and beyond.

He noted that the Exchange is determined to ensure that all sectors of Nigeria’s economy are fully represented on NGX.

According to him, the NGX would also ensure that the transparency, sustainability, ethical values, and private sector dynamism that drives the Exchange drives the economy.

He said: ”We are proud and happy to have Transcorp Power Plc on our main board as it gives our investors another strong, viable company to invest in.

“I also commend the management of Transcorp Power as their dedication and commitment to operational efficiency and innovation is evident in the remarkable achievements of the organisation.

In his remark, Mr Jude Chiemeka, Acting Chief Executive Officer (CEO), NGX, said that the listing being the first of the year, underscores the pivotal role the NGX plays in shaping the economic landscape and significant contribution to the Nigerian economy.

“This listing is, particularly, noteworthy against the backdrop of the All-Share Index (ASI) surpassing the 100,000 points mark earlier in the year and a current market capitalisation of N54.34 trillion as at Feb. 28, 2024.

“The NGX is not just a platform for trading stocks; it is a catalyst for economic growth and development.

“The listing of Transcorp Power exemplifies our belief that the NGX serves as a viable platform for the privatisation of energy companies, driving efficiency, innovation, and sectoral growth.

“I am particularly proud to highlight the exemplary achievements of Mr Tony Elumelu and his affiliated companies within the NGX ecosystem.

“Under his visionary leadership, these entities have experienced extraordinary growth, with Transcorp Hotel’s stock price soaring by more than 1000 per cent and Transnational Corporation by over 500 per cent in the past year,” he said.

According to him, the listing marks a significant milestone in Transcorp Power Plc’s journey and highlights its commitment to transparency, accountability and growth.

Transcorp Power Plc, a subsidiary of Transnational Corporation Plc (Transcorp Group), was established on Sept. 24, 2012, as Transcorp Ughelli Power Ltd. (TUPL).

The company has been steadfast in its mission to revolutionise energy production in Nigeria since commencing plant operations on Nov. 13, 2013.