Transcorp Hotels Plc’s shareholders have injected N9.93 billion in new equity funds into the hospitality and tourism company.
In fourth quarter 2020, Transcorp Hotels, owners of Transcorp Hilton Abuja and Transcorp Hotels Calabar, had sought to raise N10 billion through the issuance of 2.66 billion ordinary shares of 50 kobo each at N3.76 per share to prequalified shareholders. The rights were pre-allotted to existing shareholders on the basis of seven new ordinary shares for every 20 ordinary shares of 50 kobo each held as at Monday, July 13, 2020.
Official listing report showed that the rights issue recorded a subscription level of 99.34 per cent with shareholders accepting 2.642 billion ordinary shares of 50 kobo each at N3.76 per share. The newly issued shares have been listed at the Nigerian Stock Exchange (NSE).
With the listing of additional 2.642 billion ordinary shares, the total issued and fully paid up shares of Transcorp Hotels increased from 7.60 billion to 10.24 billion ordinary shares of 50 kobo each.
Managing Director, Transcorp Hotels Plc, Dupe Olusola, said the company’s track record of excellent service delivery has positioned it as the first choice for international and local guests.
She said: “We are not resting on our oars but working 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.”
She added that while the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit, Transcorp Hotels is optimistic about a great recovery for the sector.
She said shareholders’ approval for new capital raising showed that shareholders have confidence in the future of the company, assuring that the company will continue to play their part in ensuring a significant recovery to the Nigerian hospitality industry.
Transcorp Hotels is the hospitality subsidiary of Transnational Corporation of Nigeria Plc. It owns and operates Transcorp Hilton Abuja, which provides luxury accommodation, excellent cuisine, conferencing and leisure facilities to business travellers and tourists from all over the world. The company also holds 100 per cent interest in Transcorp Hotels Calabar Limited, which owns and operates the Transcorp Hotels in Calabar.