By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – Transcorp Hotels Plc (THP) will be listing its shares on the floor of the Nigerian bourse November 05, 2015 according to its offer prospectus as the hospitality firm opens its Initial Public Offering (IPO) Wednesday September 24, 2014.
The board of directors (BODs) of Transcorp Hotels on Friday approved the listing and IPO at a completion board meeting (CBM) held at Heirs Place in Lagos Nigeria.
Valentine Ozigbo, managing director/chief executive officer (MD/CEO) of THP said proceeds of the 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,” he said.
‘’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,’’ Ozigbo said.
According to him, the 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 CEO of THP affirmed.
He further affirmed that 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.
On his part, Emmanuel Nnorom, the president and CEO of Transcorp Plc, the parent company, said 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.
THP in regulatory filing early September said its seeking fresh funds of N8.0 billion by offering 800,000,000 ordinary shares of 50 kobo each at N10.00 per share.
Transcorp Plc own 88 percent of Transcorp Hotels through Capital Leisure and Hospitality Limited. The remaining 12 percent is owned by the Federal Government of Nigeria.
Lead Issuing House to the IPO is UBA Capital Plc; Joint Issuing Houses are LeadCapital Plc and BGL Capital the offer for subscription will close on September 30, 2014.
