Transcorp Hilton Abuja, Nigeria
Transcorp Hotels has raised NGN 4.2B (USD 23M) from its recent initial public offering (IPO), indicating a 52 percent subscription level.
Transcorp Hotels was targeting to raise NGN 8B, offering 800 million shares at NGN 10 per share. Transcorp Hotels had made the IPO open to the investing public between September and October 2014.
Although Transcorp Hotels was unable to raise its full target amount, market analysts said that, given the bearish trend in Nigeria’s capital market in the last quarter of 2014, the result of Transcorp Hotels’ IPO indicated a high level of confidence by investors in the company.
“Given the high rate of decline the market suffered in the last quarter of 2014 and the general low investor confidence, Transcorp Hotels raising NGN 4B is highly commendable. It shows the high level of confidence investors have in the board, management, and future of the company,” Mike Ezeh of Crane Securities Limited said.
Transcorp Hotels has stated that it will use the IPO proceeds to finance expansion projects, specifically the construction of two new flagship hotels in Ikoyi, Lagos and Port Harcourt.
Speaking on the IPO results, Transcorp Hotels’ Managing Director, Valentine Ozigbo, said that Nigeria’s hospitality industry is experiencing significant growth, with major demand for expanded capacity and enhanced quality and service.
“Transcorp Hotels is ideally-positioned, as the owner of the largest number of hotel rooms in Nigeria and a partner 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 said.
Ozigbo added that the Nigerian hospitality industry is fast becoming more competitive, given the increased presence of international brands in recent years. He assured investors that Transcorp Hotels has a strong brand and success story.
“We have a strong brand and success story in Nigeria as well as good long term relationships with established suppliers in Nigeria. These factors, coupled with our partnership with Hilton Worldwide for management of our facilities, opens up a large opportunity for our proposed developments in the high density areas of Nigeria to attract a considerable portion of business travel and tourist traffic which should translate to adequate guest patronage,” Ozigbo said.
Source: Transcorp Hotels raises N4.2bn from Initial Public Offering – Nigeria Business News – Nigeria Business News.
- Transcorp Hotels plans close to $50M IPO to develop new luxury hotels in Nigeria
- Transcorp to expand hotel and power investments in Nigeria
- Transcorp Hotels lists on the Nigerian Stock Exchange
- AccorHotels signs deals to open three hotels in Ethiopia
- The top 10 hotels for service in Nigeria: TripAdvisor
- Hotel developers will invest billions of dollars in African projects over the next few years
- Weekend guide to Lagos
- Why Marriott’s Expansion in Africa Could Mean Long-Term Gains
- Ethiopia aims to grow tourism threefold in five years
- Curio – A Collection by Hilton makes its Africa debut at Nigeria’s Murtala Muhammed International Airport
- Hilton Expands Presence in Nigeria with Signing of Hilton Lagos Airport
- Redefining African Luxury in Lagos, Nigeria
- Nigeria’s Hotels.ng Raises $1.2 Million
- Nigerians tap into Africa’s fast-growing $1.5B luxury market
- Hilton to open hotel in Africa’s tallest development (Photos)
- Ethiopia: The Addis millionaire’s club
- Fact of the Day: Addis Ababa has Africa’s highest hotel room rates
- Hotel booking platform Jovago’s double-digit revenue growth spurred by African tourism boom: Marek Zmyslowski, MD, Jovago
- Over 5,000 hotels can now be booked online – We have significantly changed the nature of Nigeria’s hospitality industry: Mark Essien, Founder, hotels.ng (Video)
- Africa’s rising middle class – and why it matters
- Hotel development in Africa jumps 30% to 64,000 rooms for 2016
- JLL predicts increased hotel investment activity in Sub-Saharan Africa
- World’s fourth-largest hotelier AccorHotels to open 50 hotels in Angola by 2017
- Europe, Asia? No – Airbnb’s next big push is in Africa
- London’s first high-end Nigerian restaurant, Ikoyi, is to debut at the St James’s Market in the West End this summer
- Nigeria’s tourism opportunity can be unlocked by local online booking platforms
- Examining the State of Hotel Development in Africa
- Nigeria’s leading hotel booking company Hotels.ng launches flight bookings
- France & Angola sign business deals from oil to hotels
- Work begins on the tallest skyscraper in Africa
- How Africa is getting ready to welcome more travelers (Video)
- It’s time to invest in Africa – Here are 3 ways to get started
- Why Marriott International Is Investing In Africa
- Hotel real estate sector in Africa set for strong growth: JLL
- Why Africa is a perfect market for Airbnb
- The 20 most valuable companies in Nigeria
- Hilton becomes latest hotel chain to tap Ethiopia’s fast growth
- Angola’s $7 Billion Waterfront Project Seeks to Attract Hilton Hotels
- The Silo: Is this Africa’s best new hotel? Check out photos
- Marriott International Opens First Property in Kenya