Transcorp Hotels Nigeria to Raise N8 Billion Via IPO

 In news

The Board of directors of Transcorp Hotels Plc (“THP”), formerly Transnational Hotels and Tourism Services Limited, has given approval to the company’s plans to conduct an Initial Public Offering (IPO) and list its shares on the Nigerian Stock Exchange.

THP will offer 800,000,000 ordinary shares of 50 kobo each at N10.00 per share for subscription. 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.

The offer for subscription, will open on September 24 and close on September 30 ,2014. The company is expected to raise N8 billion at the close of the offer.

THP is the hospitality subsidiary of Transnational Corporation of Nigeria Plc (“Transcorp Plc”) and owns and operates the Transcorp Hilton Abuja and the Transcorp Hotels Calabar. The Company’s vision is to be the premier hospitality company in Africa, creating maximum and sustainable value for stakeholders, as well as to build Africa’s choice hospitality assets underpinned by excellence entrepreneurship and execution.

Managing Director and Chief Executie Officer of he company, Mr. Valentine Ozigbo, the Managing Director and CEO of THP, stated that Nigeria’s hospitality industry is experiencing significant growth, with major demand for expanded capacity and enhanced quality and service, adding that 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.

His words: “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”.

THP will leverage its unique partnership with the Hilton brand and strong customer base to provide an excellent guest experience and achieve superior returns from the new assets.

Mr. Emmanuel Nnorom, the President and CEO of Transcorp Plc, the parent company, remarked that 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. Source: Bloomberg

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