Transcorp Corporation of Nigeria Plc has suffered a loss of $8.9 million on the Nigerian Exchange, as shares tumbled from a 24-week high of N1.02.
The loss came off the back of a sell-off in the company’s shares, as wary investors took a flight to safety after Transcorp’s share price surged to a record 24-week high of N1.02 on July 30 in reaction to the company’s unaudited half-year results.
Transcorp stock on the Nigerian Exchange jumped to a record 24-week high on July 30, as investors acquired shares in the group in reaction to a 713-percent rise in its half-year profit.
Since July 30, shares in the diversified conglomerate with key exposure to the power sector have declined from N1.02 ($0.00248) to N0.93 ($0.00226) as of press time, 7:20 AM (UTC), Aug. 4.
This has resulted in a loss of almost nine-percent for shareholders, particularly Tony Elumelu, who holds a substantial stake of 840,632,956 ordinary shares. His stake declined by N75.7 million ($183,800).
The group’s market capitalization on the Nigerian Exchange has declined from N41.5 billion ($100.7 million) on July 30 to N37.8 billion ($91.8 million) as of press time.
This translates to a loss of N3.7 billion ($8.9 million) in four days, as shares in the diversified group tumbled from the 24-week high of N1.02 ($0.00248) on July 30 to N0.93 ($0.00226).
Transcorp, a diversified conglomerate with strategic investments and core interests in the hospitality, agribusiness and energy sectors, recorded a profit after tax of N6.5 billion at the end of the first half of 2021.
The conglomerate’s profit in the first half of 2021 leaped by 713 percent compared to last year when it recorded a profit of N800 million ($1.94 million).
Aside from the operational efficiencies in the first six months of the year, the triple-digit growth in Transcorp’s profit was delivered by a 53-percent jump in group revenue from N35 billion in 2020 to N53.3 billion at the end of the first half of 2021.