Transcorp Power, the energy division of Transnational Corporation of Nigeria Plc (Transcorp), a publicly traded diversified conglomerate led by Nigerian businessman Tony Elumelu, is set to list 7.5 billion shares on the Main Board of the Nigerian Exchange. The listing, scheduled for Mar. 4, aims to generate value for investors and signifies a pivotal move in the conglomerate’s commitment to creating value from its various business units.
Approximately a year after Tony Elumelu affirmed plans to establish Transcorp Power as an independent entity within five years, the power company is poised to assume a prominent position in the Nigerian financial market. Drawing inspiration from Transcorp’s successful spin-off of Transcorp Hotels through an initial public offering in 2015, currently boasting a market capitalization of N1 trillion ($618 million), this move follows a proven precedent.
The listing of Transcorp Power shares will introduce a total of 7.5 billion shares, each valued at N240 ($0.148), to the Nigerian Exchange. This strategic maneuver is expected to result in an implied valuation of N1.8 trillion ($1.115 billion) for the power company, marking a significant milestone in its journey toward establishing a robust market presence and fostering growth.
Insiders familiar with the listing plans have disclosed that Tony Elumelu will hold a 30 percent stake in Transcorp Power, placing his estimated valuation at N540 billion ($333 million). This not only reinforces his standing as one of Nigeria’s affluent entrepreneurs but also propels him into the ranks of Africa’s leading business leaders.
Transcorp’s decision to list Transcorp Power aligns with the backdrop of the conglomerate’s impressive financial performance in the 2023 fiscal year. With a notable 44 percent surge in revenue, surpassing $160 million, this growth was spearheaded by increased revenue from its power unit, reaching N151.27 billion ($126.64 million), and a significant uptick in revenue from its hospitality business, amounting to N42.7 billion ($35.75 million).
Tony Elumelu’s influence within Transcorp, coupled with his roles in Heirs Holdings, United Bank for Africa, and the Tony Elumelu Foundation, has played a pivotal role in steering the conglomerate toward financial success. Through his investment firm HH Capital, Elumelu commands a substantial 29.5 percent stake in Transcorp, owning 11,990,957,350 ordinary shares.
The impending listing of Transcorp Power shares signifies a significant leap in Transcorp’s pursuit of enhancing shareholder value and consolidating its position in Nigeria’s energy landscape. This move underscores Tony Elumelu’s strategic vision and leadership within the conglomerate, positioning it for continued success.
