Transcorp invades stock market
December 27th, 2006 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
With just a few days to the end of the year, the much long awaited Initial public offer (IPO) of Transnational Corporation Plc(Transcorp) is finally here.
The offer is said to be the biggest so far in the country, exceeding that of Dangote Sugar Refinery. The corporation is out to raise N60 billion through a public offer of 8,000,000,000 ordinary shares of 50 kobo each at N7.50 per share. The offer opens on December 27, 2006 and closes on January 31, 2007.
According to the company’s’ group managing director, Bernard Longe, the offer is a generational public offer. He also said that the choice of floating the offer at such a time like this was so that everyone would partake in it, in the spirit of the yuletide season.
While guaranteeing investors of good returns on their investment, the chairman of the corporation, Ndi okereke- Onyiuke said that the offer was undertaken to finance the expansion of Transcorp’s Hilton Hotel; Energy through services and supplies to the upstream Oil and Gas industry, downstream infrastructure investments, Agric- processing and Export, International trading and Trans- Shipment, provision of technical infrastructure and services, refinancing existing acquisition costs, Research and Development and provision of additional working capital for the company’s operations.
It would be recalled that the company was listed by introduction on the floor of the Nigerian stock exchange in November 2006 at N6.00. the share presently goes for about N9.00, thus representing an increase of about 50% in only about a month.
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Despite being a supported of the Transcorp project, I hope we are walking in measured steps in pursuit of this great idea.
The way and manner the stock is rising pre-IPO is alarming, however we hope there are no cadbury rats in the house.
I must commend the government for their roles in ensuring that the nigerian stockmarket emerges as one of the strongest capital market in the international market,although the listing of Transcorp in the nigerian stock exchange has created a lot of controversies,giving birth to critics from all walks of life.I believe transcorp will yield dividends for her investors.