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Investors in Transcorp Hotels offer promised consistent dividend

By on September 27, 2014

The Managing Director and CEO of Transcorp Hotels Plc (THP), Mr. Valentine Ozigbo, has stated that the company will stick with 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 investors and stockbrokers at the NSE yesterday, stressed that the company has consistently rewarded its stakeholders with mouth-watering returns over the years and would continue to do so.
The initial public offering (IPO) by Transcorp Hotels Plc to raise about N8 billion from the investing public opened on Wednesday, September 24, 2014 and is expected to closeOctober 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 of THP 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 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.
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.
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,” Ozigbo added.

 

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