Transcorp Hotels Files Request to List N10bn Rights Issue

By Modupe Gbadeyanka

A request for the listing of its N10 billion rights issue on the Nigerian Stock Exchange (NSE) has been filed by Transcorp Hotels Plc.

The application was submitted by the hospitality company through its stockbroker, United Capital Securities Limited.

According to a notice dated Tuesday, July 14, 2020, and signed by the Head of Listings Regulation at the exchange, Mr Godstime Iwenekhai, the company wants the rights issue to be admitted on the NSE trading platform after they must have been allotted to shareholders.

Recently, shareholders of Transcorp Hotels authorised the board to go ahead with the exercise, which is aimed to inject funds into the business for a stronger balance sheet.

The coy intends to offer 2,659,574,468 shares to investors at a unit price of N3.76 on the basis of seven new equities for every 20 stocks held as at the close of business on Monday, July 13, 2020.

In the circular issued by the exchange, Mr Iwenekhai said, “Dealing members are hereby notified that Transcorp Hotels Plc has through its stockbroker, United Capital Securities Limited, submitted an application to the Nigerian Stock Exchange for the approval and listing of a rights issue of 2,659,574,468 ordinary shares of 50 kobo each at N3.76 per share, on the basis of seven new ordinary shares for every 20 ordinary shares held.”

Business Post recalls that at the Extraordinary General Meeting (EGM) of the company held on Monday, June 29, 2020, in Lagos, Chairman of Transcorp Hotels Plc, Mr Emmanuel Nnorom, noted that, “This approval and endorsement of shareholders empower the board and management to look to the future with confidence despite the current harsh operating environment.”

The Managing Director/CEO of Transcorp Hotels Plc, Mrs Dupe Olusola, assured investors at the meeting that the team will not rest on its oars but work round the clock “to innovate new products and services to further delight our guests, notable of such is the launch of asset-light strategies to deepen our hospitality footprints across Africa.”