Transcorp Power is set to debut on the Nigerian Exchange Limited (NGX), boasting a market capitalization of N1.8 trillion.
The company is a member of the Transcorp Group, which includes Transcorp Hotel, equally listed as a separate entity.
In a statement obtained by Nairametrics, it was revealed that the company aims to offer 7.5 billion ordinary shares, of 50 kobo each, at a listing price of N240.00 per share.
The listing ceremony is set to take place on March 4th at the premises of the Nigerian Exchange Limited.
It stated,
- “We are delighted to announce that 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 is scheduled for Monday, 04 March 2024”
Recall in April 2023, Transcorp Chairman Elumelu stated that there were plans to list Transcorp Power as a separate entity within 5 years.
Mr. Elumelu made this comment when he was asked about rumors of a potential spin-off of Transcorp Power Plc following a board resolution passed after its Annual General Meeting (AGM).
Elumelu denied the rumors that he planned to list Transcorp Power as a separate institution on the Exchange, stating that the conglomerate was in it for the long term.
- “No (we are not listing), I hear that rumor from time to time, especially after some competing institutions were listed on the Exchange. No, we are long-term players, we want to grow more and significant value in the power sector.” Elumelu said.
He, however, proceeded to confirm that a spin-off was on the cards, albeit in 5 years, on the condition that transmission lines and challenges with gas would have been fixed.
- “We are looking at about 5 years from now to list Transcorp Power because we believe the transmission lines would have been fixed and the gas supply to the power sector would have improved significantly,” Elumelu said.
At an expected valuation of N1.8 trillion, Transcorp Power will become the second most valuable power company on the exchange and will automatically join the SWOOTs( Stocks Worth Over One Trillion Naira).
The most valuable power company based on market capitalization is Geregu Power with a market cap of N2.4 trillion.
What are we going to gain in this listing by introduction, those of us that are shareholders of transcorp. Is it going to favour us or not? Thanks
How can Geregu power be the most valuable company on the exchange?
This methods of listing is a disadvantage to the shareholders/investors as we are at the mercies of the promoters who can decide to create artificial scarcity just to make sure the price goes up as soon as the stock hit the market.
We are urgently calling on NGX and NSE to please block all loopholes to prevent infractions and protect the investors.
Read well bro..Geregu is the most valuable power company listed on the exchange by market cap. Do you have any other criteria then state or and your company.
Meanwhile, Transcorp power will be the largest fraud on the NGX. If you spin off a company from another listed company then existing shareholders must have shareholding in the new entity..It happened in the case UBA Plc when United capital and African Prudential registrars.were spinned off. Transcorp energy that is being transformed to transcorp power today belongs to.the old transcorp group.. How can Tony Elumelu strip trsnscorp of its most valued asset for his benefit and his few cronnies. Regulators need to protect Nigerian investors. Tony Elumelu should get out of transcorp and concentrate on his heirs energy. Small investors should not be short changed. I hope all shareholders group can resist this rape on our collective investment..The whole idea of listing transcorp power was shrouded in secrecy. This is a rip off!
This is absolutely correct. This is the same thing they did with Trancorp hotels and retail shareholders of Transcorp PLC got nothing. SEC should save us from Tony Elumelu and give us our shares in Transcorp Hotels and Transcorp Power.
I was terribly disturbed when I heard about this fraudulent listing of Transcorp power as a separate entity on Nigeria stock exchange,I bought Transcorp holding shares because of Transcorp power, how on earth will Tony Elumelu be allowed to play fast one on the investors, NGX & NSE should wade into this matter except if there’s a plan to allocate certain fraction of Transcorp power shares to the share holders of Transcorp holding PLC .
All these big boys in Nigeria have one thing in common, greed & dishonesty….
If this is allowed , it will be the biggest fraud & rape perpetrated on Nigeria stock exchange.
Nothing can happen guy! Nigerians are first on the stupidity list.They are second to none on religious idiocy.Wale Tinubu did it to Oando minority shareholders yet no qualms.Why shout crucify him! crucify him!! Just because it’s Elumelu’s turn? In the Western world people apply every available means to avenge injustices done to them.Some men have lost their lives,wives and children lost also because of one person’s greed.It can happen here. Yes it’s now,possible in Nigeria.
The plan is for Transcorp Plc to remain the majority shareholder in transcorp power plc. Who is the majority shareholder in transcorp Plc? Tony Elumelu and his cronnies. Either way, Tony is in charge. Meanwhile, SEC a
should further ivestigate this transaction to ensure investors are not cheated. Meanwhile, Transcorp must pay good dividends and bonus from this value addition whole exploring other areas of businesses tomfill.the gap created.