Transcorp Power Hits N2.85trn as Investors Bet on Earnings Stream
Transcorp Power Plc experienced a sustained increase in its market price on the local bourse after listing by introduction, settling at N2.85 trillion on Friday, according to details from the Nigerian bourse. Interested share pickers are betting on its future earnings stream using its historical financial scorecard as a yardstick for their respective projections.
Ticker: TransPower was listed at N240 per share on the Nigerian Exchange’s agreed market valuation of N1.8 trillion. Its market capitalisation increased by more than 58% in two weeks of trading activities in the market.
The power generating company is known for delivering record growth before it came to the domestic market. The electric power generating company’s share price grew by more than 58%, and the largest shareholders reduced their interest to provide liquidity for Transcorp Power plc.
The move was necessitated as part of efforts to boost incoming investors’ confidence in the liquidity power of the electric power stock. As stockbrokers implemented buy orders from clients, the share price rose.
Trading records reviewed by MarketForces Africa showed that demand has been strong since the company listed its shares. Last week, MarketForces Africa reported that Transcorp Power came to the Nigerian Exchange with 7.5 billion shares outstanding at N240 per unit.
After this, the company witnessed sporadic buying interest from Alpha seekers, eyeing better future earnings and dividends. Details from the regulatory filing revealed the chairman and other directors of Transcorp Power Plc have reduced shareholdings in the power generating company.
Transcorp Power Plc’s register of members revealed a total of 7,500,000,000 outstanding shares. Meanwhile, a significant majority of these shares were held by the parent company, Transnational Corporation Plc.
At the listing date, Transcorp Plc controlled 51.57%, amounting to 3.87 billion shares of Transcorp Power Plc. The market requires Transcorp Plc to sacrifice its interest in order to give liquidity to the listed shares. So, the conglomerate has to sell part of its interest.
With its latest large share selloffs after listing, the investment company’s interest would have reduced. Rich Point Limited, the second highest shareholder with a 33.27% holding, also sold some of its shares.
Further down the line in the shareholding hierarchy are: Woodrock Energy Resources Limited (7.46%), Seaforce Investments Limited (3.60%), and Thomassen Holding Limited (2.57%) of the total shareholding, respectively, as Meristem 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, its second largest single shareholder, 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. 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 offloaded 121,879 shares at the same price. Transcorp Power PLC Board chairman Mr Emmanuel Nnorom released 195,006 shares at N319.40.
Also, 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. Naira Suffers Big, CBN Goes Ballistic Against FX Whales
Transcorp Power Plc 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. #Transcorp Power Hits N2.85trn as Investors Bet on Earnings Stream
