NGX: Transcorp Power lists 7.5bn shares, targets N500bn revenue

By Chukwuma Umeorah 

Transcorp Power Plc (TPP), a subsidiary of Transnational Corporation Plc (Transcorp), has listed 7.5 billion ordinary shares of 50 kobo on the Main Board of the Nigerian Exchange Limited (NGX) on Monday. 

Listing by introduction at N240 per share and 7.5 billion shares outstanding, TPP’s market capitalization 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 and raising its valuation to N1.98 trillion demonstrating enthusiastic response from investors. 

TPP becomes the second Power company listed on the Stock Exchange following Geregu Power Plc.

According to the Chairman of TPP, Emmanuel Nnorom, the Listing was a strategic move by the company to provide a platform for new investors to be admitted and to diversify existing shareholder base while positioning the Company for access to a larger pool of capital raising options. 

Nnorom who spoke at the “Fact Behind the Listing” after the closing Gong also revealed that the Company was targeting an annual revenue in excess of N500 billion by 2031 in line with its long term strategy and objective. He noted, “We aim to achieve this by diversifying our energy mix, make additional investment 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.” This he explained would be attained by leveraging the company’s strong corporate governance and sustainability framework and partnership with key stakeholders. He added that TPP has demonstrated strong financial track record impressively raking up Revenues from N55.9 billion to N142.2 billion in 5 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.”

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