Transcorp Hotels Plc, a leading company in the hospitality industry has exited the group of firms with a market value exceeding N1 trillion due to negative investor sentiment in the local stock market.
The market value of Transcorp Hotels dropped to about N922 billion as a result of the pressure from investors. The market valuation of the corporation underwent notable changes subsequent to the sale of its Calabar business and a decrease in operations.
Transcorp Hotels gave Eco Travels and Tours Limited, a nearby hotel business, all of its ownership in Transcorp Hotels Calabar Limited, according to Bizwatch Nigeria.
Changes in investor mood caused Transcorp Hotels’ share price to fall by 10% on Friday, despite an overall increase on the Nigerian Stock Exchange. The price of the shares fluctuated until settling on Thursday at N90 per share. According to data from the local stock exchange, Transcorp Hotels Plc has 10.242 billion outstanding shares, meaning its market value is N920 billion.
The company’s shares are currently trading at a 1.7% discount to their 52-week high, according to local stock exchange data. This represents a significant increase from the 52-week low of N16.
In the first quarter of the year, Transcorp Hotels boosted its revenue through increased business activity. The company’s impressive earnings results attracted investors, positively influencing price trends.
The hospitality subsidiary of Transnational Corporation Plc reported revenue of N13.8 billion in the first quarter of 2024, a 72 percent increase from N8 billion in the same period the previous year
