Transcorp Power closes gong, then lists 7.5bn shares on NGX

•  Raises market cap by N1.8trn 

Business a.m

Transcorp Power has today, rung the closing gong on the trading floor of the Nigerian Exchange Limited after listing 7.5 billion of its ordinary shares at N240 per share on Nigeria’s pioneer stock exchange.

After performing the closing gong ceremony at the NGX Monday March 4 2024, Transcorp Power took the opportunity to hold a “Facts Behind the Listing” session to engage with market stakeholders and provide valuable information about its financial performance.

The decision to list the shares on the Nigerian Exchange Limited is to highlight Transcorp Power’s strong financial performance and its focus on enhancing shareholder value. The company’s journey started in 2013 with the acquisition of the Ughelli Power Plant, a once-ailing asset that was brought back to life through a combination of private sector expertise and government support. Since then, the company has achieved its full 972 megawatts (MW) installed capacity, a far cry from the 160MW it was generating when it was acquired.

The 2012 acquisition of Ughelli Power Plc marked the beginning of Transcorp Power’s journey to become a major player in the Nigerian power sector. The company’s subsequent merger with Ughelli Power Limited has allowed it to leverage synergies and improve operational efficiency. As part of the Power Africa initiative by USAID, Transcorp Power has invested $300 million in expanding its capacity and transforming the company.

Transcorp Power’s decision to list on the NGX is a clear sign of the company’s maturity and ambition to become a leading power provider in Nigeria. Its market capitalisation of N1.8 trillion is expected to make it the second most valuable power company on the NGX. The listing will not only help the company raise its profile and connect with investors, but it will also be instrumental in achieving its long-term growth goals.

The listing of Transcorp Power on the NGX is a major accomplishment that highlights the potential of Nigeria’s capital market and the growth opportunities in the country’s power sector.

Analysts expressed confidence that the listing will inspire other companies in the energy sector to also make a move to list on the NGX, noting that by listing on the exchange, these companies can access capital from a broader range of investors and boost their market visibility and pave the way for further investment in the energy sector, as well as increased job creation and economic growth.