Transcorp Hotels Meets NGX Free Float Compliance
Transcorp Hotels Plc’s share price appreciated moderately in the just concluded week as the hospitality company announced it has now fully complied with the Nigerian Exchange (NGX) free float requirements.
Starting the week at N44.9 per share, the share price trended positively as it closed at N45.90, according to data from the Nigerian Exchange. In the last 12 months, Transcorp Hotels has gained more than 630%, making it one of the best performers on the local exchange.
At the end of the trading session in the stock market on Friday, the hospitality giant was valued at N470.132 billion over its 10.242 billion outstanding shares at a unit price of N45.90. The hotelier share price opened the week at N44.90; and peaked at N51 during the week.
Before now, the company has been operating below the free float requirement and its share price has jumped significantly in 2023.
Damilare Asimiyu, Afrinvest Head of Investment Research told MarketForces Africa that Based on the NGX listing standard, a company with just 5% free float is not qualified to be termed a publicly listed company.
“For companies in this category, you’ll see BLS- Below Listing Standard in front of their name. This is because, the NGX standard requires that for a company to be called a publicly listed company, not less than 10%-15% (growth company) or 20% (standard/main board companies) of the company’s shares must be available for trading on the exchange”, he explained.
In a regulatory filing, Stanley Chikwendu, the company’s secretary announced that the hospitality player has now fully complied and BLS tag has been removed as a result.
“…Transcorp Hotels PLC wishes to notify the investing public that further to the Company achieving compliance with Nigerian Exchange Limited’s free float requirement for companies listed on its Main Board, the NGX has removed the Compliance Status Indicator (CSI) of BLS (Below Listing Standard) placed beside the Company’s name across NGX’s platform.
Chikwendu said the removal was a sequel to the NGX RegCo’s monitoring of the Company’s free float compliance status for three months, adding that as of 21st September 2023, Transcorp Hotel’s free float stood at 12.78% with a market capitalization of N58, 788,278,971.52.
Its ownership structure showed that the leading Nigerian hospital company is 76.16% owned by Transnational Corporation Plc. with 76.16%, regulatory filing reviewed by MarketForces Africa Research showed.
Also, the Ministry of Finance Incorporate controls 11% of the group’s shares outstanding. MarketForces Research report showed that both Transcorp Plc and the Ministry of Finance incorporation control 87% of the group’s 10.242 billion outstanding shares.