Transcorp Power electrifies Nigeria’s Stock Market

Transcorp Power is now the second company that generates electricity to be listed by introduction on the Nigerian Exchange Limited (NGX) mainboard. In the Introduction, only existing, outstanding shares are sold; no new shares are created, and the company listing is exempt from the book building, underwriting, and public offer processes.

Transcorp Power listing by introduction implies that only current owners of the business—that is, shareholders—transfer their current shares to any potential buyer of a stake in the business. Its price is approaching N400 per share on the Exchange because of the stock market’s substantial appreciation since it listed 7.5 billion shares outstanding at N240.00 per share on March 4, 2024.

Investor demand for the company’s stock price during its first week of trading on the NGX was incredibly strong, driven by the company’s strong fundamentals and well-funded management, which also offered a high rate of return-on-investment. Transcorp Power’s valuation grew by almost N1trillion within a week on the NGX

The largest gas-fired power plant in Nigeria, Transcorp Power is a subsidiary of Transnational Corporation Plc (Transcorp), the continent’s most prominent listed and diversified conglomerate. It sets the standard for energy generation for millions of people in Nigeria and throughout Africa.

The NGX listed utility company has been able to gradually increase its capacity utilization rate over the past few years, despite installed capacity remaining constant. The company’s utilization rate reached a five-year high of 78% in 2023. Over the previous five years, Transcorp Power’s revenue has increased dramatically due to a rise in energy delivery and capacity charges as well as the profitable expansion into foreign markets.

Transcorp Power reported revenue of N55.94 billion in 2019 and N65.12 billion in 2020, according to the revenue breakdown. Revenue was N74.33 billion in 2021, N90.35 billion in 2022, and N142.12 billion in 2023.

The breakdown also showed that Transcorp Power’s revenue was derived from local customers to the tune of 82.2 percent, while its revenue from international customers accounted for 17.8 percent.

The company has maintained and increased its EBITDA margins, solidifying its reputation as one of Nigeria’s top power generation firms. From 36.7 percent in 2019 to 48.8 percent in 2023, EBITDA margins have grown.

The MD/CEO, of Transcorp Power, Peter Ikenga, stated the business offers a special opportunity in Nigeria’s power generation subsector, which is essential to the development of the nation’s economy.

Transcorp Power, in his words, is a prominent thermal power-producing company in Nigeria, making up 7% of the country’s power generation capacity.

With its current assets, it currently generates 10% of Nigeria’s power and has the potential to contribute even more. Ikenga emphasized the company’s strong operational history, pointing outthat the rapid increase in available capacity to 701 MW from 160 MW in 2017 and its steady contribution to the national grid demonstrate the dependability and efficiency of the plant.