Transcorp Power Lists 7.5bn Units, Boosts NGX Market Cap By N1.8tr

Transcorp Power Plc, a leading power generation subsidiary of the Transnational Corporation of Nigeria Plc, on Monday, March 4, 2024, listed its entire 7.5bn shares in issue by introduction on the Main Board of the Nigerian Exchange (NGX).

The shares which were listed at N240 per share boosted the overall market capitalisation of the NGX by N1.8tr, with its share price appreciating by 10%.

Speaking at its Facts Behind the Listing presentation, where it showcased its performance and strategy to stakeholders, the company’s Chief Executive Officer, Peter Ikenga, said the company had witnessed transformation in its ownership, through the takeover of a government-owned asset into a leading private sector led organization.

Transcorp Power, he said, presents a unique opportunity in Nigeria’s power generation sub-sector, which is pivotal to the country’s economic growth, explaining that the firm has 18 gas turbines of different capacities.

According to him, “through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines, irrespective of the section of the plant in which they are located.

“Whilst installed capacity has remained same in the past few years, Transcorp Power has been able to steadily improve on its capacity utilization rate. In 2023, the Company’s utilization rate stood at 78%,” he added.

Also speaking at the event, the group Chairman, Nigerian Exchange Group, Alhaji Dr. Umaru Kwairanga commended the listing, which he said was a testament to the resilience, innovation, and excellence within Nigeria’s power sector.

This, he said, also underscores NGX’s pivotal role in driving economic growth and development in our nation, saying “we as an Exchange are determined to ensure that all sectors of Nigeria’s economy are fully represented on NGX and that the transparency, sustainability, ethical values, and private sector dynamism that drives the Exchange drives the economy.”

Kwairanga further said “with a market capitalization exceeding N1 trillion, Transcorp Power’s entry into the public market represents a significant milestone, highlighting the increasing confidence and maturity of our capital market.

“It is a clear signal of the transformative journey our energy sector has embarked upon, thanks to the Electric Power Sector Reform Act and subsequent market liberalization,” he stressed.

Acting CEO of the NGX, Jude Chiemeka noted that with Transcorp Power boasting a remarkable market capitalization of over N1tr, marking the first listing of the year, underscored the pivotal role NGX plays in shaping Nigeria’s economic landscape.

He added that NGX is not just a platform for trading stocks, “it is a catalyst for economic growth and development, and we recognize our responsibility in supporting the government’s privatization efforts, particularly within the energy sector.

“The listing of Transcorp Power exemplifies our belief that NGX serves as a viable platform for the privatization of energy companies, driving efficiency, innovation, and sectoral growth,” he said.

Also, the Chief Finance Officer of Transcorp Power, Evans Okpogoro added that The Company’s revenue has grown impressively over the past five years, driven by a surge in energy delivery and capacity charge, coupled with the lucrative expansion into international markets.

Okpogoro explained that the company has sustained and grown its EBITDA margins, thereby strengthening its pedigree as one of the leading power generation companies in Nigeria.