Transcorp Power Plc increases its market capitalization by N2trn, listed on Nigerian Exchange

Transcorp Power Plc, the nation’s biggest gas-powered generating company, has listed its shares on the Nigerian Exchange (NGX) thereby granting the investing public access to its ownership.

Upon the company’s listing, investors rushed to acquire shares of the organization, which produces over 10 percent of the nation’s electricity.

The intense competition for shares increased the entry listing value of Transcorp Power from N1.8 trillion to N1.98 trillion.

As an introduction, the company issued 7.5 billion ordinary shares, each valued at 50 kobo and priced at N240.

In contrast, the share price reached its highest daily allowable increase of 10 percent, concluding at N264 per share. This signifies a net gain of N180 billion during the immediate period following its listing.

At a price of N10.56 billion, a total of 40 million shares of Transcorp Power were traded.

Additionally, investors exhibited greater fervour towards Transnational Corporation (Transcorp) Plc, the parent company of Transcorp Power, which experienced a 9.94 percent increase.

On March 4, 2024, both corporations had the most active securities on the stock market, as measured by both volume and value.

By 2031, Transcorp Power aims to accomplish an annual revenue growth exceeding N500 billion, while also striving to supply power to a quarter of the nation’s households and industries.

Mr. Peter Ikenga, the Managing Director of Transcorp Power, said at the NGX listing in Lagos that the listing emphasized the company’s transition from a government-owned asset to a prominent private-sector-led enterprise.

He stated that Nigerians would be able to further benefit from the company through ownership and a stake in its exciting future development prospects as a result of the listing.

According to him, that organization offers a distinctive prospect within the power generation sector of Nigeria, an industry that is critical for the nation’s economic expansion.

According to Ikenga, the organization possesses a total of 18 gas turbines with varying capacities. These include six Frame 9E General Electric (GE) gas turbines with a capacity of 105mw each and twelve Hitachi H25 gas turbines with a capacity of 23.8MW each.

The three principal divisions of the facility were delineated by him as Delta II, Delta III, and Delta IV. Different capacities of gas turbines (GTs) are present in each delta.

Ikenga said Transcorp Power had consistently maintained and upgraded its turbines to ensure optimal performance, regardless of the specific segment of the facility where they are situated, by implementing efficient maintenance and upgrading initiatives.

“Through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines and balance of plant.

“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 utilisation rate stood at 78 per cent,’’ Ikenga said.

Presenting the financial highlights, the company’s Chief Finance Officer (CFO), Mr Evans Okpogoro said the company’s revenue has grown impressively over the past five years, driven by a surge in energy delivery and capacity charge.

He said the company has sustained and grown its profit margins while exploring new growth opportunities in lucrative international markets.

Okpogoro pointed out that international customers contributed about 18 per cent of the company’s turnover in 2023.

He outlined that the company’s turnover had grown from N55.94 billion in 2019 to about N142.12 billion in 2023, underlining the successive improvements in operations and expansions.

Describing the listing as a milestone, Mr Umaru Kwairanga, the Chairman of the Nigerian Exchange Group (NGX Group) Plc, also highlighted the significant transformation of Transcorp Power and the energy sector.

“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 liberalisation.”

While restating NGX’s commitment to playing its pivotal role in driving economic growth and development in the nation, he said: “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.”

Mr. Jude Chiemeka, the Acting CEO, Nigerian Exchange (NGX), said the exchange is not just a platform for trading stocks but as a catalyst for economic growth and development.

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

Persecondnews recalls that Transcorp Power was founded on September 24, 2012, as Transcorp Ughelli Power Limited (TUPL) after it emerged as the preferred bidder during the privatization of the national electricity assets by the Federal Government.

Transcorp Power owns the 972mw-installed capacity Ughelli Power Plant (UPP) at Ughelli, Delta State and in 2023, the company became the first power generation company to be discharged from post-privatization monitoring by the National Council of Privatisation, having met and surpassed set targets.

In December 2023, it transitioned to a public limited liability company with the name changed to Transcorp Power Plc.