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 capitalization. This accomplishment follows a sustained period of remarkable market performance that propelled the company’s market capitalization to over N470 billion.
The term “free float” refers to the publicly tradable shares of a company that are not subject to restrictions. According to NGX regulations, companies listed on its Main Board, where top stocks are traded, are mandated to either have 20 percent issued and fully paid share capital or maintain a N20 billion market capitalization on publicly traded shares.
Transcorp Hotels Plc initially achieved NGX compliance in June, driven by significant growth in market capitalization attributable to its outstanding financial performance and operational efficiency. The Exchange, as part of its standard practice, conducted a three-month monitoring period for the company’s free float compliance status, starting from June 30, 2023, to September 22, 2023.
“The current free float for Transcorp stands at 12.78%, with a market capitalization value of N58,788,278,971.52 as of September 21, 2023,” the Exchange noted in a statement.
Emmanuel Nnorom, Chairman of Transcorp Hotels Plc, expressed his enthusiasm for this achievement, stating, “Sustaining compliance with NGX’s free float requirement underscores Transcorp Hotels Plc’s resilience and strategic positioning in the market. We are committed to upholding the highest standards of transparency and corporate governance, which are the pillars of our success.”
Nnorom also highlighted the company’s impressive performance over the years, with its share price growing by more than 500 percent in the past year.
In the first half of 2023, the company reported 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 in the previous year, demonstrating remarkable growth of over 27 percent.
The NGX has removed the Compliance Status Indicator (CSI) of “BLS” (Below Listing Standard) next to Transcorp Hotels Plc’s name on its platform, reflecting the company’s unwavering commitment to meeting post-listing obligations and surpassing industry benchmarks.
Transcorp Hotels Plc remains dedicated to its pursuit of excellence, with a focus on delivering exceptional value to shareholders and other stakeholders. The company’s strong financial foundation and sustainable growth trajectory position it favorably in the competitive landscape of the hospitality sector.