Transcorp Hotels Plc, a subsidiary of Transcorp Group, has successfully met the Nigerian Exchange’s (NGX) free float requirement for companies listed on its Main Board through free-float market capitalization.
This accomplishment follows several months of strong market performance, leading to the company’s market capitalization surpassing N470 billion.
The NGX mandates that companies listed on its Main Board must have 20 percent issued and fully paid share capital or a market capitalization of N20 billion for publicly traded shares to meet the free float requirement.
In June, Transcorp Hotels Plc initially attained compliance, thanks to its strong financial performance and efficient operations. Subsequently, the NGX monitored the company’s free float compliance status for three months, ending on September 22, 2023.
As of September 21, 2023, the company’s free float stands at 12.78 percent, with a market capitalization value of N58,788,278,971.52, according to the NGX.
Emmanuel Nnorom, Chairman of Transcorp Hotels Plc, expressed enthusiasm about the achievement, stating, “Maintaining compliance with NGX’s free float requirement is a testament to Transcorp Hotels Plc’s resilience and strategic positioning in the market. We are committed to upholding the highest standards of transparency and corporate governance, factors that underpin our success.”
Nnorom also highlighted the company’s remarkable performance, with the share price growing by more than 500 percent in the past year. Transcorp Hotels reported a 49 percent year-on-year profit increase in the first half of 2023, reaching N3.53 billion compared to N2.37 billion in H1 2022.
Revenue also surged to N18.98 billion from N14.99 billion during the same period in the previous year, demonstrating a remarkable growth of over 27 percent.
Following this achievement, the NGX removed the Compliance Status Indicator (CSI) of “BLS” (Below Listing Standard) from Transcorp Hotels Plc’s name on its platform, reflecting the company’s commitment to meeting post-listing obligations and surpassing industry benchmarks.