In 2013 Transnational Corporation plc (Transcorp Group), Nigeria’s largest diversified conglomerate with strategic investments and core interests in the hospitality, energy added power to its growing portfolios.
This investment happened at a time when some experts had labeled the Nigerian power market a high-risk investment arena. But for Transcorp Group, the risk was all worth it.
Recall in 2013 Transcorp acquired the 972MW gas-fired Ughelli Power Plant to make a deep foray into the Power sector. In furtherance of catalysing that mission, in 2020, Transcorp added the 966MW gas-fired Afam Power Plant bringing our total installed capacity to approximately 2000 MW.
The investment was a defining moment in the history of power investments in Nigeria as the company has defiled all the gloomy predictions to become a thriving power company and has even invested in a new entity – the Abuja Electricity Distribution Company (AEDC) to ensure power gets to the last mile users safely and reliably.
Transformational Power of Tony Elumelu
Tony Elumelu has indeed got the Midas touch. Everything he touches literally turns gold. His rare leadership competencies and capabilities inspire success in all the entities he has invested in. This resonates with his philosophy. “Everything we do is about impacting lives and transforming our society.” Especially in Africa. He actively promotes Africapitalism.
From Standard Trust Bank to UBA Plc and now Heirs Holdings Group, Mr. Elumelu has brought his Midas touch to bear.
“In 2010 when I left UBA as the CEO, I founded Heirs Holdings family investment company that invests in key sectors of the African economy. We are driven by our philosophy of Africapitalism – we want to see the private sector play its role in the economic development of our continent. We believe strongly that business leaders should be agile, and execute our strategy, only the paranoid survive” Elumele told a gathering of business leaders recently in Abuja. 
The Chairman of Heirs Group continued: “We are known for how to turn around businesses. Our expertise is in unlocking the value of the assets we hold. And our track record speaks for itself. The turnaround of a defunct Crystal Bank birthed into Standard Trust Bank, which is now part of today’s United Bank for Africa (UBA).”
Investment banker would also say: “We set out clear goals which we labeled our strategic intent and worked assiduously to ensure we met them. Today, UBA Group operates in 20 African countries, the UK, France, the UAE, and the USA. We are the only African bank with a deposit-taking license in the USA.”
“In 2010, following my retirement as the CEO of UBA, and in looking for new opportunities and ventures, the Heirs Holdings Group, my family’s investment firm acquired Transcorp Plc. At the time, Transcorp was formed to lead the industrialisation of Nigeria. The only asset Transcorp Group had back then was this hotel in which we are all gathered today. Today, Transcorp plays in the hospitality, power (both in generation and distribution) and in the oil & gas sectors.”
In Power sector he said, “we acquired the 972MW gas-fired Ughelli Power Plant and ramped up its generations from 160MW to 701MW within four years of taking over the plant. Our Ughelli Power Plant is the first privatized power company to be discharged from post- privatization monitoring having surpassed all set targets by the BPE and the National Council on Privatisation. Transcorp Hotels has also been issued a Certificate of Discharge by the National Council on Privatisation. We are confident that once we fix the issues of gas supply in Nigeria, we will be able to generate enough electricity to significantly power our country’s industrialization” he stated further.
These bespoke investments no doubt have demonstrated Mr. Elumelu’s uncanny capability to empower the right team to deliver on his vision and mission.
The Founder of the Tony Elumelu Foundation strongly believes in the philosophy of Africapitalism, investing for the long-term, not the short-term, in strategic sectors of the economy that not only create profit but also create social wealth for the communities he operates in.
“It is the philosophy that drives our business, but it is also what drives the Tony Elumelu Foundation – why I have catalysed thousands of young entrepreneurs across Africa – why we have funded, trained, and mentored them, to create a new generation of Africapitalists,” he emphasized.
Transcorp Power Listing and the Gains
On Monday, March 4, 2024, Transcorp Group achieved a significant milestone by listing its subsidiary, Transcorp Power Plc (Transcorp Power or TP Plc) via listing by introduction on the Main Board of the Nigerian Exchange (NGX).
Following this listing, Transcorp Group have subsidiaries listed on NGX, demonstrating its commitment to creating value for the Nigerian public and catalyzing economic growth in Nigeria.
By way of explanation, the listing by introduction implies that existing shareholders in the company are offering a portion of their ordinary shares in order to create liquidity in the market and enable institutional investors and members of the investing public to acquire shares in the company. The approval procedures for a new listing by introduction are the same as those for initial public offerings (IPO). This is because the existing shares for which listing is sought are already of such an amount and so widely held that there would be an open market for the trading in these shares. Since only existing shares are listed by introduction, no new shares will be issued.
Transcorp Power’s Market Capitalization on the listing day was ₦1.8 Trillion and the listing price was ₦240 per share of 7.5 billion shares.
The listing further consolidated investors’ investments in Transcorp Power with greater prospects for the growth of their investments. It also provided a better opportunity for investors to offload their shares at any time. It also gives opportunity to new investors to buy stocks in the company on the floor of the exchange.
The new listing provided a platform through which new investors (from the public) could be admitted into the Company, thereby diversifying the existing shareholder base of TP.
The listing has indeed positioned the company for access to a larger pool of capital-raising options and contributed to the growth of the NGX and the Nigerian capital markets at large.
Transcorp Power has done well with a good profitability margin. It posted
₦142.1bn revenues as of the full year 2023. It has posted profits consistently over the years and contributed significantly to the Group’s bottom line.
The company also has a decent cash conversion circle. It can easily convert its revenue to cash.
Commenting on the listing, Mr. Elumelu said as the Group Chairman of Transcorp, “I am happy, impressed, and satisfied with what has happened. In the Group, we have three companies that are listed on the exchange with a combined capitalization of N3.4 trillion which is significant. To us, it is all about improving lives and transforming societies.”
“We want the wealth to go round which is why we invested in power. We know that access to electricity is critical to powering our country out of poverty, creating jobs, helping hospitals to operate, and schools to function, helping our country industrialize, and helping our children to do homework. For us at Transcorp, it is not just about wealth creation but economic opportunities for all of us” he further stated.
Transcorp Power Performance Since Its Listing
One week after listing performance, Transcorp Power shares appreciated by N111.30 or 46.4 percent to close at N351.30, while its market capitalization added N834.75 billion as of March 8, 2024.
In the first three days of trading, investors showed strong interest in Transcorp Power which saw its share price appreciate to N319.4, from the preceding day’s N290.4, reaching a maximum 10 percent daily rise.
Transcorp Power Impacts The Economy
Peter Ikenga MD/CEO Transcorp Power Plc recently said the company presents a unique opportunity in Nigeria’s power generation sub-sector, which is pivotal to the country’s economic growth because of its position, as leading thermal power generating company in Nigeria.
He said Transcorp Power is projected to power 10 million homes, schools, hospitals & industries. It is currently generating about 10 percent of Nigeria’s power. 
Indeed Transcorp Power presents a unique opportunity in Nigeria’s power generation sub-sector, which is pivotal to the country’s economic growth
TP has a solid operational track record for quick-ramp up in available capacity to 701MW from 160MW in 2017 and consistent contribution to the national grid depicts plant reliability and efficiency. Zero HSE fatalities since take-over
Strategic Value-Adding Partnerships Membership with WAPP and bilateral arrangements with DisCos offer strategic advantages for TPP. Strong relationship with key stakeholders; providing support to TCN for grid stabilization and reliability, the MD recently said.
The company has projected a long-term goal of powering 1 in 4 households and industries in Nigeria.
TP is not only creating profit but also creating social wealth for the communities she operates in thus democratizing access to wealth and opportunities among host communities.
