Following its entrance into the stock market arena, Transcorp Power‘s newly minted status witnessed a remarkable surge in market capitalization by approximately N378 billion within a tight two-day timeframe to reach N2.18 trillion, buoyed by an increase of around N50 per share.
On the start of the trading week, Transcorp Power initiated its listing through introduction, releasing 7.5 billion ordinary shares valued at 50 kobo each, priced at N240 per share, resulting in a substantial market capitalization of N1.8 trillion. It gained 10 percent on its first trading day to close at N264 per unit.
As Tuesday drew to a close, marking Transcorp Power’s second day of trading, the value of its shares surged to N290.40 per unit, propelling its market capitalization to an impressive N2.18 trillion.
This suggests that early investors who took positions in the company’s stocks have reaped significant rewards, with gains amounting to a substantial N378 billion within just a span of two days.
The listing of Transcorp Power Plc, which is a power subsidiary of Transnational Corporation Plc was commemorated with a Closing Gong ceremony and a ‘Facts Behind the Listing’ presentation at the Nigerian Exchange building in Lagos.
“The listing which comes on the 10th anniversary of Transcorp Power’s demonstrates the Company’s strong corporate governance, operational excellence, and value creation for stakeholders.
“This track record was earlier recognised in May 2023, when the Company became the first successor Power Generating Company in Nigeria to receive its post-privatization discharge from the National Council on Privatisation, having met and surpassed the key performance indicators set out by the Bureau of Public Enterprises,” a statement from the firm on Tuesday said.
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Speaking at the exchange, Transcorp Power’s Managing Director/Chief Executive Officer, Peter Ikenga, said, “This is a testament to our unwavering dedication to powering Nigeria’s growth. We embark on this new chapter with a sense of purpose, innovation, and a commitment to continue to deliver sustainable energy solutions in Nigeria and beyond.”
Transcorp Power operates the Ughelli Power Plant in Delta State, with an installed capacity of 972 MW.
Upon acquisition, the plant’s operational capacity stood at 160MW. Yet, Transcorp Power’s strategic investments paved the way for a substantial expansion, culminating in an impressive 680.83MW within a mere four-year period. This remarkable achievement, surpassing the Bureau of Public Enterprises’ five-year target of 670MW, represents a remarkable 227 percent increase.
As a member of the West African Power Pool and an active participant in the ECOWAS Regional Electricity Market, Transcorp Power Plc plays a vital role in the regional energy landscape. Today, the company stands as a key supplier of electricity to the ECOWAS Regional Market, contributing to the region’s efforts towards energy integration and sustainability.
Ikenga reports that Transcorp Power witnessed a significant uptick in revenue derived from power sales to ECOWAS countries, with the figure soaring to 18 percent. This marks a substantial increase from the initial 3.3 percent when the company commenced exporting power in 2020.