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Investors trade Transcorp Power’s 40mn shares worth N10.56bn after listing

Nigeria’s rate hike further hurts stocks

Investors in Nigeria’s equities market exchanged 40million units of Transcorp Power Plc shares worth N10.560billion on its first day of listing.

The Nigerian Exchange Limited (NGX) on Monday March 4 listed by introduction Transcorp Power Plc 7.5billion ordinary shares of 50 kobo each at N240 per share.

The listing of Transcorp Power Plc by introduction added about N1.86trillion to the equities market capitalisation of the Nigerian Bourse.

Following its listing, the power company takes market stakeholders through its Facts Behind the Listing, after performing the Closing Gong Ceremony of the NGX.

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At the Facts Behind the Listing, the management provides stockbrokers, investors, analysts, fund managers and capital market correspondents with market information about its financial performance.

Transcorp Plc in September 2012 during the privatisation of Nigeria’s national power assets won the bid for the Federal Government of Nigeria’s distressed power generating company, Ughelli Power Plc – operator of Ughelli Power Plant.

The $300 million investment was part of strategic investor Heirs Holdings’ commitment to USAID’s Power Africa initiative. In November 2015, Transcorp Ughelli Power Limited and Ughelli Power Plc merged, and Transcorp Power Limited was born. The merger harmonised the management and operations of Transcorp’s power business for greater efficiency.

When Transcorp took ownership of the 1000MW capacity plant in 2013, its mission was to take it from generating only 160MW of power daily, back to producing at its full 972MW installed capacity.

Today, Transcorp Power has increased its generating capacity by 525percent, and plans to grow it to over 3,000MW in the next five years. The electricity produced by Transcorp Power is transported through a network of conductors, to the national grid.

As of December 31, 2023, Transcorp Power Plc register of members reveals a total of 7.5billion outstanding shares. A significant majority of these shares (51.57percent) is held by the parent company, Transnational Corporation Plc (Transcorp), amounting to 3.87billion shares.

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Also as at December 31, 2023, RichPoint Limited is the second highest shareholder with 33.27percent holding. Further down the line, Woodrock Energy Resources Limited, Seaforce Investments Limited and Thomassen Holding Limited have 7.46percent, 3.60percent, and 2.57percent of the total shareholding, respectively.

The residual percentage of 0.20percent is distributed among 7 shareholders with less than 1percent each of the total shareholding.