Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group has achieved full compliance with the Nigerian Exchange’s (NGX) free float requirement for companies listed on its Main Board through free-float market capitalisation. This comes following months of sustained impressive market performance that saw the company’s market capitalisation rise to more than N470 bn.
Free float refers to the shares of a company that can be publicly traded and are not restricted. According to the NGX, companies listed on its Main Board, where its top stocks are listed, are required to have 20 percent issued and fully paid share capital or have a N20 billion market capitalisation on its publicly traded shares.
Transcorp Hotels Plc had in June achieved compliance with the NGX’s requirement as it experienced significant growth in its market capitalisation due to its excellent financial performance and operational efficiency. However, the Exchange monitored the Company’s free float compliance status for a period of three (3) months starting from Friday, 30 June 2023 to Friday, 22 September 2023 in line with its practice of monitoring a company’s free float.
“We further note that Transcorp’s free float currently stands at 12.78% with a value (market capitalization) of N58, 788,278,971.52 as at 21 September 2023,” a notice by the Exchange stated.
Emmanuel Nnorom, Chairman, Transcorp Hotels Plc, expressed enthusiasm regarding the achievement, stating, “Maintaining compliance with NGX’s free float requirement is a testament to Transcorp Hotels Plc’s resilience and strategic positioning in the market. We are committed to upholding the highest standards of transparency and corporate governance, factors that underpin our success.”
He also added that the impressive performance of the company over the years has built market confidence, seeing the share price grow by more than 500 percent over the past year.
The Company had in the first half of 2023 grown profit by 49 percent year-on-year, reaching N3.53 billion compared to N2.37 billion in H1 2022. Revenue also soared to N18.98 billion from N14.99 billion recorded during the same period of the previous year, showcasing a remarkable growth of over 27 percent.
The NGX has now removed the Compliance Status Indicator (CSI) of BLS (Below Listing Standard) beside Transcorp Hotels Plc’s name on its platform, reflecting the company’s unwavering dedication to post-listing obligations and its resolve to continually exceed industry benchmarks.
Transcorp Hotels Plc remains steadfast in its pursuit of excellence, with a focus on delivering exceptional value to shareholders and other stakeholders alike. The company’s strong financial foundation and sustainable growth trajectory position it favourably in the competitive landscape of the hospitality sector.
