Transcorp Hotels Records Significant Valuation Surge, Hits N1.022Trn
Transcorp Hotels is booming as the hospitality company’s 10 billion shares outstanding have increased in value, crossing N1 trillion on Friday. MarketForces Africa reported on Sept 24 that the hospitality giant was valued at N470.132 billion over its 10.242 billion outstanding shares at a unit price of N45.90.
On Friday, the company was valued at N1.022 trillion as share price climbed to N100, according to data from the Nigerian Exchange. In 12 months, the hospitality market player has registered a whopping 1500% increase in share price amidst stronger-than-usual investor sentiment.
Transcorp Hotels generated N29.85 billion as revenue for 9 months in the financial year 2023, a significant push of about 32% from N22.654 billion raked in the comparable period in 2022. Out of this, its gross profit was N21.592 billion which was also about a 32% year-on-year surge from N16.381 billion declared in the comparable.
This suggests that costs of sales remain under control, though it grew from N6.273 billion to N8.257 billion as the hospitality operational activities level increased. The hotels’ profit climbed by about 79.2%, from N2.272 billion it posted in its 9-month financial statement in 2022 to N4.071 billion 12 months later.
The hospitality player tamed its finance costs to grow the bottom line. At the same time, management leveraged of strong cash position to drive finance income higher amidst a 45% year-on-year increase in its income tax provision for the period. In a regulatory filing, Stanley Chikwendu, the company’s secretary announced that the hospitality player has now fully complied with the free float requirement and the 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.
Other shareholders owned 13% in the same period. The hotel company’s share closed the week at N100 in the local bourse on Friday. It had opened the week at N84.85 per share. #Transcorp Hotels Registers Significant Valuation Surge, Hits N1.022Trn Naira Rises by 19% as Forex Market Pressures Ease