Transcorp Power Jumps by 46% as Insiders Sell Large Shares
Equities investors placed a much higher value on shares of Transcorp Power Plc after the company was listed by introduction last week. Its market cap crossed N2.6 trillion in five days from N1.8 trillion accepted by the Nigerian Exchange on its first day.
The electric power generating company’s share price grew by more than 46% as insiders or the existing shareholders in the company reduced their positions or interest to provide liquidity for Transcorp Power plc.
The new listed company shares have been relatively scarce in the local bourse for new investors, according to MarketForces Africa findings.
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 regulatory filing revealed the chairman and other directors in Transcorp Power Plc sell down or reduce shareholdings in the power generating company.
As a result of decision to sell down and provide liquidity, Transcorp Power Plc was revalued upward 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 sell down by insiders provided an opportunity to outsider to participate the future earnings stream, of Transcorp power. This positive trading activities lifted its market capitalisation to N2.634 trillion from N1.8 trillion on the introduction day.
The large share appreciation posted last week was propelled by its existing shareholders ability to provide required market liquidity. As of December 31, 2023, the company’s register of members revealed a total of 7,500,000,000 outstanding shares.
A significant majority of these shares were held by the parent company, Transnational Corporation Plc (TRANSCORP). At listing date, Transcorp Plc controlled 51.57% amounting to 3.87 billion shares of Transcorp Power Plc.
With its latest large shares selloffs after listing, the investment company interest would have reduced. Rich Point Limited, the second highest shareholder with 33.27% holding, also sell some of its shares.
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, 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 shareholders, 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 reviewed by MarketForces Africa. 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 offloaed121,879 shares at the same price. Transcorp Power PLC Board chairman Mr Emmanuel Nnorom released 195,006 shares at N319.40. Also, HH Capital Limited sell down 560,643 shares of Transcorp Power Plc at N290.40 per share on March 5. On this same day, Rich Point Limited unload 73,052,664 shares at N290.40 per share.
Transcorp Power Plc majority shareholders, Transcorp Plc, offloaded or sell down more stake totalling 42,972,933 at average price of N265.83 between March 4 and 5 2024 in the stock market. #Transcorp Power Jumps by 46% as Insiders Sell Large Shares NGX Grows by N3.26trn after Transcorp Power Listing
