Transcorp lists new shares on stock exchange


August 30, 2007/ Punch



Shares from the initial public offer of Transnational Corporation Plc will be listed on the Nigerian Stock Exchange today.


The News Agency of Nigeria reports that the listing is coming more than five months after the closure of the offer.


Although Transcorp, NSE and the Securities and Exchange Commission were silent on reasons for the delay in the listing, NAN quoted authoritative market sources that the delay was caused by “high level” investigation into activities of the company by a the Economic and Financial Crimes Commission.


The company had between December 26, 2006 and February 14, 2007 offered, through the NSE, eight billion ordinary of 50k at N7.50 per shares to the public and was intended to raise N60bn from the capital market.


In a joint statement, the seven issuing houses to the offer on August 6, admitted that the offer was only 36.2 per cent successful.


The issuing houses attributed investors’ low response to the offer to doubts on the quality of the company’s assets, which investors claimed, were mainly assets acquired through privatisation and which needed to be turned around.


Transcorp spokesman, Mr. Adedayo Ojo, confirmed that the offer was 36.2 per cent successful and that the company was satisfied with the performance.


He said, “If you look at what we have done over the past 18 months, we have raised approximately $1bn from the Nigerian capital market.”


“Given our history and age, compared with other companies elsewhere, we have been hugely successful.’’


Ojo said also that the company had been able to raise as much money as it needed and was considering the sale of part of equity stake in the Nigerian Telecommunications Limited.


Transcorp was set up by a group of Nigerian businessmen in 2005 with the support of former President Olusegun Obasanjo. Before the IPO, the company had about 2,400 shareholders through a previous private placement and is core investor in Transcorp Hilton Hotel and NITEL.


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