Transcorp Hotels Plc, the hospitality arm of Transcorp Group, on Wednesday said it has achieved full compliance with the Nigerian Exchange’s (NGX) free float requirement for companies listed on its Main Board by market capitalisation.
Free float refers to the shares of a company available to the public for traded and not restricted.
This comes following months of sustained impressive market performance that saw the company’s market capitalisation surpass N470bn, following which the NGX has removed the Compliance Status Indicator (CSI) of BLS (Below Listing Standard) from beside Transcorp Hotels’ name on its platform. This, the company, said reflects its unwavering dedication to post-listing obligations and its resolve to continually exceed industry benchmarks.
According to the NGX, companies listed on its Main Board, comprising its top stocks, are required to have 20% of issued and fully paid share capital, or shares valued at N20bn available to be traded by the public.
Transcorp Hotels had in June achieved compliance with the NGX’s requirement, following the significant growth in its market capitalisation due to what is described as its excellent half-year financial performance and operational efficiency.
The company’s free float compliance status was, however, monitored by the Exchange for a period of three months between Friday, June 30, and Friday, September 22, 2023 in line with its practice of monitoring a company’s free float.
According to a notice by the Exchange, “we further note that Transcorp’s free float currently stands at 12.78% with a value (market capitalization) of N58, 788,278,971.52 as at 21 September 2023.”
Reacting, Emmanuel Nnorom, Chairman, Transcorp Hotels Plc, expressed enthusiasm, even as he noted that “maintaining compliance with NGX’s free float requirement is a testament to Transcorp Hotels Plc’s resilience and strategic positioning in the market. We are committed to upholding the highest standards of transparency and corporate governance, factors that underpin our success.”
He added that the impressive performance of the company over the years has built market confidence, seeing the share price grow by more than 500% over the past year.
Transcorp reported 49% half-year profit growth year-on-year, reaching N3.53bn, compared to N2.37bn in H1 2022, while revenue soared to N18.98bn from N14.99bn recorded during the same period of the previous year, showcasing a remarkable growth of over 27%.