Transcorp Plc Market Value Climbs to N563 Billion

The stock market value of investment company Transcorp Plc has climbed to about N563 billion ahead of fourth quarter of financial year 2023 earnings results expected to hit the Nigerian Exchange in January 2024.

The conglomerate that had remained in the penny stock asset class is now priced at N13.85, it opened the week at N12.66.  The company has 40.647 billion outstanding shares, of which about 24% is available for trading in the open market.

In the last seven trading sessions in the Nigerian stock market, the conglomerate has enjoyed a more than 20% uptick in market valuation. The same happened when Transcorp Incorporation topped the highest mover in the second trading week.

MarketForces Africa reported that Transcorp Plc was one of the biggest movers in the equities market in the second week of 2024, recording a 46.19% surge in valuation.

The rerating came as stock pickers took an early position in the conglomerate with strong earnings diversification. Profit is expected to rise, some analysts posit in a discussion with MarketForces Africa Research team.

According to them, investors’ interest in Transcorp Plc was boosted by morale and expectations ahead of its fourth quarter of 2023 earnings release. The management has recently intensified efforts to diversify and boost the company’s earnings performance.

Last year, there was a strategic move to alter the company’s shareholdings structure with an incursion from Femi Otedola who spotted a gap in the market position of Transcorp.

Like a hawk, Transcorp Plc chairman made counter moves, supported by his wife, Dr. Awele Elumelu who ramped up more shares from the local bourse to maintain leadership of the public company who had, at inception, promised juicy returns to early investors.

Transnational Corp. of Nigeria Plc is an investment company, which focuses on acquiring and managing strategic businesses that create long-term shareholder returns and socio-economic impact.

It operates through the following segments: Hospitality, Oil & Gas, Agro-Allied, Power, and Corporate Centre.

The Hospitality segment comprises the direct subsidiary Transnational Hotels Plc and indirect subsidiaries, Transcorp Hotels Calabar Limited, Transcorp Hotels Ikoyi Limited and Transcorp Hotels Port Harcourt Limited.

The Oil & Gas segment includes Transcorp Energy Limited and Transcorp OPL 281 Limited, which are into the exploration, refining and marketing of petroleum products.  Naira Rises by 19% as Forex Market Pressures Ease

The Agro-Allied segment relates to the subsidiary Terago Commodities Limited, which engages in the manufacture and processing of fruit concentrates from fruits from which the group derives revenue.

The Power segment is the Transcorp Power Limited of the company, which engages in the generation of electric power. The Corporate segment is the parent company and the other non-operational subsidiaries.