Nigeria’s largest gas-fired power generating company, Transcorp Power Plc, yesterday opened up its ownership to the investing public with the listing of its shares at the Nigerian Exchange (NGX).
The listing of the company got off to a rally as investors scrambled for the shares of the company which generates more than 10 per cent of the country’s power.
The scramble for shares pushed up Transcorp Power’s entry listing value of N1.8 trillion to N1.98 trillion.
The firm listed by way of introduction, 7.5 billion ordinary shares of 50 kobo each at N240 per share.
Its share price however recorded the maximum daily allowable gain of 10 per cent to close at N264 per share, representing a net gain of N180 billion within immediate period of listing.
A total of 40 million shares of Transcorp Power were traded at N10.56 billion.
Investors also showed stronger enthusiasm for Transcorp Power’s parent company, Transnational Corporation (Transcorp) Plc, which rose by 9.94 per cent.
Transcorp Power plans to achieve annual revenue growth of more than N500 billion by 2031, with a target to power a quarter of the country’s households and industries.
At the listing at the NGX yesterday in Lagos, Transcorp Power Managing Director, Mr. Peter Ikenga, said the listing underscored the transformation that had seen the company transiting from a government-owned asset into a leading private-sector led company.
He said that with the listing, Nigerians can further benefit from the company through ownership and sharing in its exciting future growth prospects.
He said that company presents a unique opportunity in Nigeria’s power generation sub-sector, which is pivotal to economic growth.
Ikenga explained that the company has 18 gas turbines of different capacities comprising 12 Hitachi H25 gas turbines of 23.8mw capacity each and six Frame 9E General Electric (GE) gas turbines of 105mw capacity each.
He listed the three major sections of the plant as Delta II, Delta III and Delta IV. Each ‘Delta’ has gas turbines (GTs) of different capacities.
Ikenga noted that 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.
He said: “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.”
Presenting the financial highlights, the company’s Chief Finance Officer (CFO), 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.
Chairman of the Nigerian Exchange Group (NGX Group) Plc, Umaru Kwairanga, described the listing as a milestone that highlighted the significant transformation of Transcorp Power and the energy sector.
According to him, the listing was a testament to the resilience, innovation, and excellence within the company and the Nigeria’s power sector.
Kwairanga 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 liberalisation.”
Kwairanga restated NGX 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.”
Acting Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka added that the NGX is not just a platform for trading stocks; but a catalyst for economic growth and development.
He said the Exchange recognizes its responsibility in supporting the government’s privatisation efforts, particularly within the energy sector.
“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,” Chiemeka said.
Transcorp Power was founded on September 24, 2012, as Transcorp Ughelli Power Limited (TUPL), having emerged as the preferred bidder during the privatisation of the national electricity assets by the Federal Government. It is the owner of the 972mw installed capacity Ughelli Power Plant (UPP) at Ughelli, Delta State, (Ughelli Power Plant).
In 2023, the company became the first power generation company to be discharged from post-privatisation monitoring by the National Council of Privatisation, having met and surpassed set targets.
In December last year, the company converted into a public limited liability company, following which its name was changed to Transcorp Power Plc.
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