Transnational Corporation (Transcorp) Plc has announced the listing of its subsidiary, Transcorp Power Plc (TPP), on the Nigerian Exchange Limited (NGX).
This was disclosed by Tony Elumelu, Transcorp chairman, at the stock market, in Lagos State on Monday.
Elumelu said Transcorp Power listed with a market capitalisation of N1.8 trillion, however, it closed trading at N1.98 trillion.
“I’m happy to be part of the historic moment, a moment that we are listing Transcorp Power plc, with a market capitalisation of 1.8 trillion. This was a company in 2013 when we started; we had a generating capacity of 160 megawatts,” he said.
“Today we have over 700 megawatts capacity. Our stock capacity is 972 megawatts so the offside is wonderful.
“It’s a great moment for me because this was a company that wasn’t doing well. We took over the company, turned around the company, and took it to where it is today, taking it to the level where it’s been listed.
“Within the Transcorp Group, we have three companies that are listed on the exchange, and the three companies have a combined market capitalisation of 3.4 trillion.”
Elumelu said the company believes in creating value for all stakeholders, adding that access to electricity is critical for poverty eradication, job creation, and the aspirations of small and medium-scale enterprises.
In a statement on NGX, the company said it now has two subsidiaries listed on the Nigerian stock market; Transcorp Hotels and Transcorp Power.
Transcorp said this demonstrates its commitment to creating value for the Nigerian public and catalysing economic growth in Nigeria.
Entering the market at N240 per share, TPP is now the second power company listed on the stock exchange after Geregu Power Plc.
Speaking about the milestone, Emmanuel Nnorom, the chairman of TPP, said the listing was a strategic move by the company to provide a platform for new investors to be admitted and to diversify the 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 said TPP is targeting an annual revenue in excess of N500 billion by 2031 in line with its long-term strategy and objective.
“We aim to achieve this by diversifying our energy mix and making additional investments in the renewable energy space. Intensify our efforts around capacity recovery and further expansion within our plants,” the TPP chairman said.
“Additionally, we are going to deepen our footprint not just within Nigeria, but across West Africa while growing our market share.”
This, he said, would be achieved by leveraging the company’s strong corporate governance, sustainability framework, and partnership with key stakeholders.
Transcorp Power’s listing comes seventeen months after that of rival Geregu Power, which was listed at N250 billion but is currently worth N2.5 trillion in market capitalisation.
“We are the only successor Genco (power generation company) post-privatisation that has been fully discharged from post-privatisation monitoring by the Federal Government,” CEO Peter Ikenga said.
“We were inducted into the West African power pool in 2018 and what that means is that it also opened the door for us to do cross-border electricity trading. Today, 18 percent of our income comes from sales of power across the border.”
Transcorp Power is targeting revenue in excess of N500 billion by 2031, its CEO said.
The company runs the Ughelli Power Plant in Delta State, which has an installed capacity of 972 MW, while the total installed capacity of the firm is 2000 MW.