After Earning N180bn on First Trading Day, Power Firm Owned by Nigerian Billionaire Rises to N2.2trn
- Transcorp Power, the newly listed company on the NGX, has surpassed the N2 trillion market valuation
- The company hit the milestone in just two days of trading after it earned about N180 billion at its debut
- The company’s shares rose by 10% at N295 per share from N264 during its debut on Monday, March 4, 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
The newly listed Transcorp Power shares began trading a day after debuting on the NGX board and featured over 16.9 million shares fully subscribed to with zero offers.
During mid-day trading of Thursday, March 7, 2024, a share volume of about 58 million units was sold at a share price of N295.4 per share, giving Transcorp Power a market valuation of N2.2 trillion.
Source: UGC
Transcorp Power's shares rises 10%
The development highlights the demand for the new power company, which concluded trading on Monday, February 6, 2024, with a 10% increase to bring its total market value to N2 trillion.
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According to Nairametrics, trading has spiked, with over 58 million shares trading at a share price of N290.4, a 10% gain for the second day.
Over 12 million shares remain on bid as the company has a total outstanding shares of 7.5 billion units.
The company opened trading with millions of bids without offers, highlighting the surging demand for its stock.
The company’s CEO, Peter Ikenga, told reporters after the listing on Monday, March 4, 2024, that more shares would be available for investors to purchase the following day.
Transcorp Group also saw a significant buying interest, recording over 176 million shares with no offers.
Transcorp Power is a Transcorp Group subsidiary owned by Nigerian billionaire Tony Elumelu.
The power company listed about 7.5 billion ordinary shares of 50 kobo on the Main Board of the Nigerian Exchange Limited.
Transcorp is now worth more than N2trin
Its share price instantly rose 10% after the listing, adding N180 billion to its N1.8 trillion capitalisation.
The company began listing at N240 per share and later rose to N264 at the end of trading.
Reports quote the chairman of Transcorp Power, Emmanuel Nnorom, as saying that the listing was a strategic move by the firm to provide a platform for new investors to be admitted and diversify the existing shareholder base while positioning the company for access to a larger pool of capital raising options.
He spoke after the closing gong at NGX, stating that the power company was targeting an annual revenue of N500 billion by 2031 in line with its long-term plans and objectives.
Per the Transcorp Power chairman, the company has shown a solid financial track record by raising revenues, rising from N55.9 billion to N142.2 billion in five years.
Femi Otedola sells N399m worth of Geregu power shares
Legit.ng reported that Femi Otedola, the chairman of Geregu Power Plc, has cashed out over N399 million from his investment in the company.
He made the money after selling 1 million units of his Geregu shares held through Amperion Power Distribution Company Limited.
The transaction details were disclosed in a corporate document submitted to the Nigerian Exchange Limited (NGX) on Wednesday, November 22, 2023.
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Source: Legit.ng
