The Initial Public Offering (IPO) by Transcorp Hotels Plc (THP) to raise about N8 billion from the investing public opens Wednesday, September 24, 2014. This follows the completion board meeting of the company held in Lagos on Friday, September 19, 2014, where the directors of THP and other parties to the IPO, including Africa Prudential Registrars Plc signed the pact for the offer.
The board of THP approved that the company issues 800 million shares of 50 kobo each at N10 per share via the IPO and the listing of the shares of the company on the Nigerian Stock Exchange (NSE) after the IPO.
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The proceeds of the offer will be used 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. THP, formerly known as Transnational Hotels and Tourism Services Limited, is the hospitality subsidiary of Transcorp Plc. The company owns and operates the Transcorp Hilton Abuja and the Transcorp Hotels Calabar with a vision to be the premier hospitality company in Africa.
According to the Managing Director and CEO of THP, Mr. Valentine Ozigbo, 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.
Speaking in the same vein, CEO of Transcorp Plc, the parent company of THP, Mr. Emmanuel Nnorom, said the existing shareholders and members of the public should be excited by this positive development to open up ownership of what is widely regarded as the most strategic piece of real estate in Nigeria and share in the fortunes of the company that is already known for its impeccable track record, healthy financials and strong corporate governance.