Transcorp Power lists 7.5 billion shares on NGX, records 10% gain

Non-Executive Director, Nigerian Exchange Group, Nonso Okpala (left); President/GCEO, Transnational Corporation(Transcorp) Plc, Dr. Owen Omogiafo; Acting CEO, Nigerian Exchange Group, Jude Chiemeka; Managing Director/CEO, Transcorp Power Plc, Peter Ikenga; Group Chairman, Transcorp Plc, Mr. Tony Elumelu; Chairman, Nigerian Exchange Group, Dr. Umaru Kwairanga; Non-Executive Director, Transcorp Power Plc, Peter Hertog; Chairman, Transcorp Power Plc, Emmanuel Nnorom; Chief Financial Officer, Transcorp Plc, Evans Okpogoro; and Non-Executive Director, Transcorp Power Plc, Risqua Muhammed, during 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 in Lagos, yesterday.

The market capitalisation of the Nigerian Exchange Limited (NGX) swelled yesterday with the listing of Transcorp Power Plc (TPP) 7.5 billion ordinary shares of 50 kobo on the Main Board.

With the listing by way of the introduction of TPP, a subsidiary of Transnational Corporation Plc (Transcorp) at N240 per share and 7.5 billion shares outstanding, TPP’s market capitalisation at listing stood at N1.8 trillion.

However, on its first day of trading, the power-generating company gained a whooping N180 billion, representing a 10 per cent increase which raised its valuation to N1.98 trillion, a demonstration of investors’ confidence in the stock.

Besides, the second power company listed on the stock exchange after Geregu Power Plc, is targeting a revenue of over N500 billion by the year 2031.

Addressing stockbrokers at the Facts Behind The Listing, shortly after the bell-ringing ceremony, in Lagos yesterday, the company’s Chairman, Emmanuel Nnorom, said the listing was a strategic move by the company to provide a platform for new investors to benefit from the company’s wealth creation exercise, diversify existing shareholder base while positioning the company to access a larger pool of capital raising options going forward.

According to him, the company was targeting annual revenue of over N500 billion by 2031 in line with its long-term strategy and objective.

“We aim to achieve this by diversifying our energy mix, making additional investments in the renewable energy space. Intensify our efforts around capacity recovery and further expansion within our plants.

“Additionally, we are going to deepen our footprint not just within Nigeria, but across West Africa while growing our market share.”

He said these would be achieved by leveraging the company’s strong corporate governance and sustainability framework and partnership with key stakeholders.

He added that TPP has demonstrated a strong financial track record, impressively raking up Revenues from N55.9 billion to N142.2 billion in five years (2019 – 2023) primarily driven by a surge in energy delivery and capacity charge, coupled with our strategic expansionary moves.

TPP operates the Ughelli Power Plant in Delta State, with an installed capacity of 972 Megawatts (MW).

Upon acquisition, the plant boasted an available capacity of 160MW.

However, through strategic investments and diligent efforts, Transcorp Power managed to improve the available capacity to an impressive 680.83MW within a mere four years. This achievement marked a 227 per cent increase in its capacity.

Commenting on the Listing, the Chairman of NGX, Umaru Kwairanga, noted that it marked a significant milestone for the company, the stock exchange and the investors.

“It is a testament to the resilient innovation and excellence within Nigeria’s power sector. It underscores NGXs pivotal role in driving economic growth and development of the nation. We are determined to ensure that all sectors of the Nigerian Economy are fully represented in the NGX.”