The titan of the hospitality sector, Transcorp Hotels Plc, has pulled out of the group of businesses with a market worth of more over N1 trillion due to unfavorable investor sentiment on the local exchange.
Pressure from selloffs caused Transcorp Hotels’ market value to drop to roughly N922 billion. Following the sale of its Calabar business and a reduction in activities, the market value of the hospital corporation saw significant fluctuations.
According to Bizwatch Nigeria, Transcorp Hotels gave Eco Travels and Tours Limited, an indigenous hospitality business, all of its ownership stake in Transcorp Hotels Calabar Limited.
Despite a surge on the Nigerian Exchange, the hospital company’s share price fell by 10% on Friday as investors’ sentiments changed.
The hotels has seen share price volatility, settling at N90 per share on Thursday in the stock market. According to data from the local bourse, Transcorp Hotels Plc’s market value printed at N920 billion on 10.242 billion outstanding shares.
The hospitality company’s share is trading at a 1.7% discount to its 52-week high, data from the local exchange revealed. Its market value has seen a significant surge from the 52 week low of N16.
In the first quarter of the year, Transcorp Hotels grew earnings following business activities. The company’s impressive earnings performance attracted investors, with positive impacts on price movement.
The hospitality subsidiary of Transnational Corporation Plc reported N13.8 billion in revenue in the first quarter of 2024, representing an increase of 72 percent from N8 billion in the comparable period.
