Transcorp Hotels Plc (THP) is planning to list on the Nigerian Stock Exchange after the conclusion of the company’s initial public offering in which its raised N4.2 billion.
THP last September issued its shares to the investing public to raise funds to part-finance its expansion projects specifically the construction of two new flagship hotels in Ikoyi, Lagos and Port Harcourt as part of its broader expansion plans.
The company said the shares would be listed on the NSE at the conclusion of the IPO and in fulfilling that promise to investors, the NSE will on Thursday admit the shares of THP to the exchange’s daily official list.
The IPO 52 per cent successful, a development market analysts had said was commendable considering the bearish situation of the market when the shares were floated.
“Given the high rate of decline the market suffered in last quarter of 2014 and the general low investor confidence, THP raising N4 billion is highly commendable. It shows the high level of confidence investors have in the board, management and future of the company,” Mike Ezeh of Crane Securities Limited had said.
Speaking on IPO, the need for THP to expand its business and improve on its market share, the
Managing Director of the company, Valentine Ozigbo, had said Nigeria’s hospitality industry is experiencing significant growth, with major demand for expanded capacity and enhanced quality and service.
“THP is ideally positioned, as the existing owner of the largest number of hotel rooms in Nigeria, and partnered with one of the world’s most prestigious hotel brands, Hilton Worldwide, to leverage this demand. The proceeds of this offer will be used to fund the development of two new
Transcorp Hilton hotels, one in Ikoyi, Lagos, and the second in Port Harcourt, with both due for completion in 2017. We are delighted to be able to offer the Nigerian public the opportunity to participate in our future success. This offer reiterates our commitment to creating sustainable value for all stakeholders.” Ozigbo said.
He added that the Nigerian hospitality industry is fast becoming more competitive with the presence of international brands in recent years but assured investors that THP has a strong brand and success story.
“We have a strong brand and success story in Nigeria as well as good long term relationships with established suppliers in Nigeria. These, coupled with our partnership with the Hilton Worldwide for management of our facilities, opens up a large opportunity for our proposed developments in the high density areas of Nigeria to attract a considerable portion of business travel and tourist traffic which should translate to adequate guest patronage,” he said.