Transcorp Power Plc Gains Momentum on Ngx Days After Its Release

Transcorp Power Plc (TRANSPOWER), a subsidiary of Transnational Corporation Plc, also known as Transcorp, was listed on the Nigerian Exchange Limited (NGX) on March 4, 2024. The power firm listed 7.5 billion ordinary shares on the exchange for 50 kobo on the Nigerian Exchange Limited (NGX) Main Board.

The company was first listed by introduction and sold each share for N240, but later, its share rose to N260 at Monday's close of the trading session. If you want to find the company on the NGX to buy its stock, you should check under the utility sector of the Nigerian Stock Exchange website (sub-sector: Electric Power Generation), or you can use this link to get there directly.

As of today, the share price of Transcorp Plc is,

Transcorp Power Plc undertook the listing by introduction to provide a platform for new investors to participate in the company's capital and future growth prospects, thereby diversifying the existing shareholder base.

On its website, it states,
There will be a “Facts Behind the Listing” at NGX Group House at 2:45pm, where the Management of TP Plc, led by the Chief Executive Officer, Mr. Peter Ikenga, will provide information to Trading License Holders, Analysts, Press and Investors about the listing and the Company.

Its listing also positions the power company for access to increased capital-raising options and further enhances its corporate visibility and awareness. It is also believed that the listing of Transcorp Power will significantly contribute to the growth of the NGX and the Nigerian capital markets.

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The company's shareholding before the listing was as follows: Transcorp Plc (51.6%), Rich Point Limited (33.3%), Woodrock Energy Resources Limited (7.4%), and Others (7.7%).

The listing by introduction means that already existing shareholders of the power company will offer part of their ordinary shares to create liquidity in the market, enabling institutional investors and members of the investing public to acquire shares in the company.

Post-listing, the company's shareholding structure will reflect the ongoing trading pattern of its shares between existing shareholders and new investors, as transacted on the NGX.

This listing by introduction does not represent any change in management or strategy, and Transcorp Power remains a full member and subsidiary of Transcorp Group. Transcorp Group shareholders will continue to benefit from Transcorp Power's growth prospects through their existing participation in the Transcorp Group.

Following the power company's decision to list on Monday, analysts have commented on the topic. We will look at just two below.

Research Analysts from CardinalStone said,

• Our TP implies a price return of 22.6% and a buy recommendation on the stock. Our outlook on the stock is premised on projected improvements in return metrics and is consistent with the following.

• The company currently accounts for 7% of Nigeria's installed grid capacity. Still, it generates 10% of the country's power needs, with its leadership position in the West African Power Pool (WAPP) and planned strategic alliances with DISCOs, eligible customers, and state governments leaving legroom for output growth in the near term.

Research Analysts from Meristem analysts said,

• Transcorp Power Plc (TPP) is a leading player in Nigeria's upstream power sector, boasting an installed capacity of 972 MW. The company's strategic location, commitment to self-sufficiency, and sustainability initiatives position it for continued growth.

• The firm's core service offerings include capacity charges, energy delivery, and ancillary services. TPP also boasts a robust supply chain network and an experienced management team, which gives the firm an edge over other power sector players.

• Our assessment of the firm's financial performance reveals a resilient ascent marked by consistent revenue growth and strategic asset optimisation. We anticipate sustained revenue expansion for Transcorp Power, which is driven by existing capabilities and emerging opportunities.

• The company's strategic initiatives, international market presence, and focus on operational efficiency position it for long-term success. We arrived at a fair value of N305.33 per share for Transcorp Power Plc by using various valuation models considering the company's growth potential, risks, and overall market factors.

The share price of Transcorp Power Plc rose by 10% on the first trade, and its N1.8 trillion capitalisation rose by 180 Billion. The Transcorp subsidiary became the second Power company listed on the Stock Exchange, following Geregu Power Plc.

"The listing was a strategic move by the company to provide a platform for new investors to be admitted and to diversify its existing shareholder base while positioning the Company for access to a larger pool of capital raising options," said Emmanuel Nnorom, chairman of Transcorp Power Plc.

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Nnorom, who spoke at the "Fact Behind the Listing" after the closing of Gong, also noted that the company was targeting annual revenue over N500 billion by 2031 in line with its long-term strategy and objective.

Nnorom added,

• We aim to achieve this by diversifying our energy mix, making additional investments in renewable energy, intensifying our efforts around capacity recovery, and further expanding our plants.

• Additionally, we will deepen our footprint within Nigeria and West Africa while growing our market share.

He explained that this would be attained by leveraging the company's strong corporate governance and sustainability framework and partnering with key stakeholders.

He stated that Trancorp Power (TPP) had demonstrated a solid financial track record, impressively raking up revenues from N55.9 billion to N142.2 billion in five years (2019 – 2023)

According to him, this is driven by a surge in energy delivery and capacity charges, coupled with our strategic expansionary moves.

Umaru Kwairanga, chairman of NGX, spoke on the listing. He said it is a significant milestone for the company, the stock exchange, and the investors, adding that the listing is proof of the resilient innovation and excellence within Nigeria's power sector.

Frequently Asked Questions (FAQs)

What is a listing by introduction?

Listing by introduction lists all issued and fully paid-up ordinary shares of Transcorp Power on the NGX without issuing new ordinary shares in the company or any capital raising.

Where does Transcorp Power operate?
Transcorp Power operates the Ughelli Power Plant in Delta State, with an installed capacity of 972 Megawatts (MW).

Who is the Chairman of Transcorp Power?
The Chairman of Transcorp Power is Emmanuel Nnorom. 

Who is the CEO of Transcorp Power?

Engr. Peter Ikenga is the MD/CEO, Transcorp Power Plc, Ughelli

Who is the MD of Transcorp Power?
Christopher Ezeafulukwe is the Managing Director/Chief Executive Officer of Transcorp Power Limited. Before his appointment, he was an executive director of Transnational Corporation Plc, responsible for business development and legal matters. He was also a Non-Executive Director of Transcorp Power Limited.

What is the Transcorp Power ticker symbol?

The Transcorp power ticker symbol is TRANSPOWER, which makes it easier to find the listed company on the Nigerian Stock Exchange website.

What is the Transcorp Power Sector on the NGX?
Transcorp power sector on the NGX is UTILITIES.

When was Transcorp Power Listed on the Nigerian Stock Exchange?

Transcorp Power Plc was listed on the Nigerian Stock Exchange on March 4, 2024.

How many ordinary shares did Transcorp Power list?

Transcorp Power listed 7.5 billion ordinary shares on the Nigerian Exchange Limited (NGX) Main Board for 50 kobo.

When was Transcorp Power founded?
Transcorp Power Plc was founded in Nigeria on September 24, 2012, and is the successor company to the merger of Transcorp Ughelli Power Limited and Ughelli Power Plc. It is a subsidiary of Transnational Corporation Plc.