MD/CE, THP, Valentine Ozigbo
From Benjamin A Ameh, Lagos
THP, formerly known as Transnational Hotels and Tourism Services Limited, is the hospitality subsidiary of Transcorp Plc
The Managing Director and CEO of Transcorp Hotels Plc (THP), Valentine Ozigbo, has stated that the company will stick on its dividend policy, when the shares being offered to the investing public are listed on the Nigerian Stock Exchange (NSE).
Ozigbo, who made this known while presenting the company’s “Fact Behind the Offer” to investing community through the floor of the NSE and stockbrokers yesterday, stressed that the company has consistently rewarded its stakeholders with steady dividend returns over the years and would continue to do so.
The initial public offering (IPO) to raise about N8 billion from the investing public, opened on Wednesday, September 24, 2014 and is expected to close October 17, 2014.
This followed the completion boarding of the company held in Lagos last week, where the directors of THP and other parties to the IPO signed the pact for the offer.
The board approved that the company issues 800 million shares of 50 kobo at N10 per share via the IPO and the listing of the shares of the company on the NSE after the IPO.
The managing director disclosed that 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 with both due for completion in 2017.
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.
Ozigbo added that 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.
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,” he said.
The stock market community welcome the Transcorp Hotel plc to the trading floor of the NSE with market price per share of its parent company stood at 5.80 with market cap anchored on 224,581,785,065.00 which also drop down the entire market capitalization of the Exchange to 13,465,446,095,347.78 and all share index decline to 40,780.00 from 40,809.32 representing 19.32
Some experts are of the opinion that IPO may not make strong move going forward as it failed to show market excitement on it first day in the Nigerian Capital market.
