Following Transcorp Power Plc’s listing by introduction last week, stock investors gave the company’s shares a significantly greater value. From the anticipated value of N1.8 trillion that the Nigerian Exchange accepted on its opening day, its market capitalization surpassed N2.6 trillion in five days.
Insiders in the company decreased their positions or shareholdings to create liquidity for the listing by introduction , which resulted in a more than 46% increase in the share price of the electricity-generating company. Ever since the company went public, demand for its shares has been high.
Transcorp Power entered the Nigerian Exchange last week, according to MarketForces Africa, with 7.5 billion outstanding shares trading at N240 apiece. Following this, the business saw intermittent purchasing interest from Alpha searchers hoping to improve future profits and dividends.
However, the chairman and other directors of Transcorp Power Plc, as a matter of necessity have to reduce shareholdings in the second power-generating company listed on the local bourse.
As a result of its decision to sell down and provide liquidity, Transcorp Power Plc was revalued by more than 46% in five days. Data from the local bourse showed that the share price of the electric power generation company increased to N351.3 as of Friday’s close.
The opportunity provided to outsiders to participate in the future earnings strategy of Transcorp lifted its market capitalization to N2.634 trillion from N1.8 trillion on the introduction day. The share appreciation was propelled more by its existing shareholders selling to provide the required market liquidity.
As of December 31, 2023, the company’s register of members reveals a total of 7,500,000,000 outstanding shares. A significant majority of these shares are held by the parent company, Transnational Corporation Plc (TRANSCORP).
have beenTranscorp Plc controls 51.57% amounting to 3.87 billion shares and with its latest large shares selloffs after listing, the investment company interest would have reduced due to this development. RichPoint Limited is the second highest shareholder with 33.27% holding also sell some of its shares.
(2.57%Further down the line in the shareholding hierachy are: Woodrock Energy Resources Limited (7.46%), Seaforce Investments Limited (3.60%) and Thomassen Holding Limited (2.57) of the total shareholding, respectively, asMeristem Securities Limited revealed in the initiation coverage note.
Investment analysts explained that the residual percentage of 0.20% is distributed among 7 shareholders with less than 1% each of the total shareholding. After listing, an insider, Rich Point Limited, sold 16,010,000 shares at N319.40 per share on March 6, 2024, the company told the Nigerian Exchange.
It also sold an additional 120000 units in the open market at N351.3, according to a regulatory filing. On March 6, Dr. Owen D. Omogiafo, a non-executive director at the company, sold 195,006 shares at N319.40. The same day, a shareholder named Christopher Ezeafulukwe purchased 121,879 shares at the same price.
Transcorp Power PLC Board chairman Mr Emmanuel Nnorom released 195,006 shares at N319.40. HH Capital Limited sold down 560,643 shares of Transcorp Power Plc at N290.40 per share on March 5. On this same day, Rich Point Limited unloaded 73,052,664 shares at N290.40 per share.
Transcorp Power Plc’s majority shareholders, Transcorp Plc, offloaded or sold down more stakes totaling 42,972,933 at an average price of N265.83 between March 4 and 5, 2024, in the stock market.
