Manufacturing and Energy

Tony Elumelu’s Transcorp Power lists on Nigerian Stock Exchange

Nigerian Exchange Limited has approved the inclusion of 7.5 billion shares of Transcorp Power Plc on its Main Board at a rate of N240 per share. This listing has significantly increased the overall market capitalization of NGX by N1.8 trillion, and the company’s shares experienced a 10% increase on the first day of trading.

After being listed on NGX, Transcorp Power conducted a presentation called “Facts Behind the Listing” to showcase its performance and strategy to stakeholders. During this event, Mr. Peter Ikenga, the Chief Executive Officer of Transcorp Power, highlighted the transformation in the company’s ownership, as it transitioned from a government-owned asset to a leading private sector organization. He emphasized that Transcorp Power plays a crucial role in Nigeria’s power generation sub-sector, which is vital for the country’s economic growth.

Mr. Ikenga further explained that the company operates 18 gas turbines with varying capacities. Through effective maintenance and upgrading programs, Transcorp Power ensures optimal performance of its turbines, regardless of their location within the plant. Despite maintaining the same installed capacity in recent years, the company has steadily improved its capacity utilization rate. As of 2023, the utilization rate stood at 78%.

Alhaji Dr. Umaru Kwairanga, the Group Chairman of Nigerian Exchange Group, praised the listing of 7.5 billion ordinary shares of Transcorp Power on NGX’s Main Board. He regarded this listing as a testament to the resilience, innovation, and excellence within Nigeria’s power sector.

He emphasized that NGX’s pivotal role in driving economic growth and development in our nation is further highlighted by this. He stated that NGX is determined to ensure that all sectors of Nigeria’s economy are fully represented on the exchange, and that the transparency, sustainability, ethical values, and private sector dynamism that drive the exchange also drive the economy.

Kwairanga further expressed that Transcorp Power’s entry into the public market with a market capitalization exceeding N1 trillion is a significant milestone, demonstrating the increasing confidence and maturity of our capital market.

He stated that this is a clear indication of the transformative journey our energy sector has embarked upon, thanks to the Electric Power Sector Reform Act and subsequent market liberalization.

Jude Chiemeka, the acting CEO of NGX, highlighted that Transcorp Power’s remarkable market capitalization of over N1 trillion, as the first listing of the year, underscores the pivotal role NGX plays in shaping Nigeria’s economic landscape.

He added that NGX is not just a platform for trading stocks, but also a catalyst for economic growth and development. He acknowledged the responsibility of NGX in supporting the government’s privatization efforts, particularly within the energy sector.

Chiemeka stated that the listing of Transcorp Power exemplifies the belief that NGX serves as a viable platform for the privatization of energy companies, driving efficiency, innovation, and sectoral growth.

Evans Okpogoro, the Chief Finance Officer of Transcorp Power, further commented that the company’s revenue has impressively grown over the past five years, driven by increased energy delivery, capacity charge, and expansion into international markets.

Okpogoro explained that the company has consistently grown its EBITDA margins, solidifying its reputation as one of the leading power generation companies in Nigeria.

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