By NKIRUKA NNOROM

Transnational Corporation of Nigeria (Transcorp) has disclosed that its N13 billion rights issue to the existing shareholders of the company was 132.08 subscribed, indicating 32.08 percent over-subscription.

The company said in a statement that the issue has since been listed on the official list of the Nigeria Stock Exchange, NSE.

Transcorp had set out to raise N12.91 billion through offering of 12.91 billion ordinary shares to the existing shareholders at N1.00 per share to finance its power projects. The offer opened on May 03, 2013 and closed on Friday June 13th, 2013.

The company had said that the rights issue option was decided on by the board and approved by the shareholders because of the importance of equity funding as major catalyst towards achieving rapid growth in its business model.

According to Mr. Obinna Ufudo, President/CEO, Transcorp Plc, the subscription was a confirmation of the unflinching support and trust reposed in the current Board and Management of the company by its shareholders, even as he said that all excess monies have been returned to the subscribers

He said, “We thank our shareholders for this significant show of support of our turnaround initiatives.  The funds raised further strengthen our ability to conclude existing transactions and initiate new investments in line with our vision. The future just got brighter for the company and our 300,000 shareholders.”

He noted that with the listing of the additional shares on the NSE, the market capitalisation of the company has increased by about 54 percent from N35.4 billion to N54.6 billion, further restating the company as one of the most capitalised stocks on the NSE.

He added that in line with the rights circular, the funds raised would be used mainly to refinance the company’s investments in the acquisition of Ughelli Power Plc and deepening its play in the Hospitality and Oil and Gas sectors.

Transcorp, through its subsidiary, Transcorp Ughelli Power Limited, owns the $300million Ughelli Power Plant acquired under the privatisation of the Nigerian power assets by the federal government. The company is also embarking on new hospitality projects in Lagos while refurbishing and expanding the Transcorp Hilton Hotel, Abuja.

The Chairman, Transcorp, Mr. Tony Elumelu, had recently said that apart from the power project, the conglomerate has started the execution of its expansion plans to fully utilise the massive unutilised land on its Transcorp Hilton Abuja site and roll out new hotels across major economic centres in Nigeria, such as Lagos and Port Harcourt.

According to him, the conglomerate has taken several significant steps in its key sectors, namely, agri-business, energy and hospitality that would see Transcorp taking its rightful place as a key player in the economic development and transformation of Nigeria.