The successful listing, via Initial Public Offering (IPO), of Transcorp Hotel Plc on the Nigerian Stock Exchange (NSE) has boosted the market capitalisation of the listed equities by N76 billion.
The NSE listed the entire 7.6 billion ordinary shares of 50 kobo each at N10 per share, yesterday, to the daily official list.
At the close of trading activities yesterday, the market capitalisation of the listed equities rose by N100 billion from N9.514 billion to N9.614 billion following the addition of the shares of the hotel.
The company embarked on an initial public offer, which opened on September 25, 2014, and closed on October 17, 2014, with the primary purpose of enabling the development of new hotels in Lagos and Port Harcourt. Prior to the IPO, the company had issued a capital of N3.581 billion made up of 7.12 million ordinary share of 50 kobo each while a total of 800 million ordinary shares of 50 kobo each was offered to the public at N10 per share with minimum subscription of 1,000 ordinary shares and multiples of 100 ordinary shares. The offer recorded a subscription level of 52.3 per cent.
The managing director of the company, Valentine Ozigbo, yesterday, at the listing of the company on the NSE said Nigeria’s hospitality industry is experiencing significant growth, with major demands for expanded capacity and enhanced quality and service.
He said “We intend to leverage on the success of the past to expand our operations and this will be to the benefit of our investing public and shareholders.”
He added that the company will also be run in a profitable and efficient manner and stated that the company would be consistent in its dividend policy, saying that the shareholders who had participated in this offer will benefit from the 2014 end of the financial year dividend payout.
Stockbrokers have advised the company to comply with post listing requirement of the NSE by posting its financial report as and at when it is due.
Source : Leadership