Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group, has successfully achieved full compliance with the Nigerian Exchange’s (NGX) free float requirement for companies listed on its Main Board.
This accomplishment follows months of outstanding market performance, which propelled the company’s market capitalization to over N470 billion.
Free float, in this context, refers to the shares of a company that are publicly tradable and not restricted.
According to NGX regulations, companies listed on its Main Board, where its premier stocks are traded, are mandated to have 20 percent of issued and fully paid share capital or a market capitalization of at least N20 billion in publicly tradable shares.
Transcorp Hotels Plc initially achieved compliance with NGX’s requirements in June, thanks to substantial growth in market capitalization driven by exceptional financial performance and operational efficiency.
However, the Exchange closely monitored the company’s free float compliance status over a three-month period, starting from June 30, 2023, to September 22, 2023.
The NGX officially announced that “Transcorp’s free float currently stands at 12.78% with a value (market capitalization) of N58,788,278,971.52 as of September 21, 2023.”
Emmanuel Nnorom, Chairman of Transcorp Hotels Plc, expressed his enthusiasm about 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.”
Nnorom also highlighted the remarkable performance of the company, with its share price growing by more than 500 percent over the past year.
In the first half of 2023, the company recorded a 49 percent year-on-year growth in profit, reaching N3.53 billion compared to N2.37 billion in H1 2022.
Revenue also surged to N18.98 billion from N14.99 billion during the same period the previous year, reflecting a remarkable growth rate of over 27 percent.
With this achievement, the NGX has removed the Compliance Status Indicator (CSI) of “BLS” (Below Listing Standard) beside Transcorp Hotels Plc’s name on its platform.
