Transcorp records 23.36% growth in market value to lead weekly gainers

Transnational Corporation Plc (Transcorp), a Nigerian conglomerate quoted on the floor of the Nigerian Exchange Limited (NGX) recorded a gain of 23.36% at the end of the week’s trading session despite the fact that the domestic bourse has remained under sell pressure.

The Nigerian equities had continued their losing streak as the All-Share Index having lost in all trading sessions this week, closed 2.08% lower week on week (w/w) to 51,893.94 points, the lowest level since 11 January.

However, after the announcement that Nigerian business mogul and billionaire, Femi Otedola, has acquired of 5.52% stake in the company, Transcorp witnessed positive sentiment that resulted in the stocks emerging top on the gainers’ table.

The acquisition which spurred investors ‘interest in the company’s stocks resulted in the share price gaining 23.36% or N13.007 billion at the close of the trading session on the weekend.

Gain

Checks by Nairametrics showed that the company’s stock price rose to N1.69 per share at the close of trading on Friday from N1.37 it traded the previous week, representing a growth of 23.36% or N13.007 billion.

Further analysis showed that Transcorp Plc closed the trading week with N68.695 billion in market capitalization as against N56.687 billion the previous day.

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Femi Otedola had acquired about 2.245 billion shares of Transnational Corporation Plc, becoming the second largest shareholder of the company.

The transaction, which represented about 5.52% of Transcorp shares, was consummated between an entity owned by Otedola and the Asset Management Corporation of Nigeria.

Transcorp is currently controlled by another billionaire, Tony Elumelu who took over control of the company in 2012.

Elumelu, who chairs Transcorp, holds 273.1 million shares directly in the company, 274 million indirectly through Heirs Holdings Limited, and 294 million shares indirectly through HH Capital Limited.

According to reports, while about 1,695 investors own about 89% of the company’s shares, only UBA Nominees own about 9.25% of the company as of December 2022. No other shareholder holds above 5%, it was gathered.

What you should know

The NGX All-Share Index and Market Capitalization depreciated by 2.08% to close the week at 51,893.94 and N28.268 trillion respectively. Similarly, all other indices finished lower with the exception of NGX Consumer Goods and NGX Sovereign Bond which appreciated by 0.05% and 1.54% respectively while the NGX ASeM, NGX Oil & Gas, and NGX Growth indices closed flat.

A total turnover of 2.824 billion shares worth N10.964 billion in 15,686 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.054 billion shares valued at N10.050 billion that exchanged hands last week in 16,155 deals.

The Conglomerates Industry (measured by volume) led the activity chart with 1.797 billion shares valued at N2.495 billion traded in 931 deals; thus contributing 63.65% and 22.76% to the total equity turnover volume and value respectively. The Financial Services Industry followed with 590.745 million shares worth N5.615 billion in 7,869 deals. The third place was the ICT Industry, with a turnover of 313.737 million shares worth N1.213 billion in 1,340 deals.

Trading in the top three equities namely Transnational Corporation Plc, Chams Holdings Company Plc and United Bank for Africa Plc (measured by volume) accounted for 2.254 billion shares worth N3.852 billion in 1,922 deals, contributing 79.81% and 35.14% to the total equity turnover volume and value respectively.