NGX Suspends Trading Of Transcorp Shares For Capital Overhaul

The Nigerian Exchange Limited (NGX) has announced the temporary suspension of trading in the shares of Transnational Corporation Plc (Transcorp) as the company embarks on a share capital restructuring process.

This move is intended to facilitate the consolidation of Transcorp’s shareholding structure and will ensure a smooth reconciliation of records between the company’s registrars and the Central Securities Clearing System (CSCS).

Recently, in an official statement addressed to the investing public and trading license holders, the NGX highlighted the importance of this suspension to prevent any further transactions while the company finalizes its capital reconstruction. This procedure is a standard practice, designed to ensure the accurate allocation of newly reconstructed shares to entitled shareholders.

The share capital restructuring will see a reduction in the number of shares in issue, although the total value of shareholders’ equity will remain unchanged. According to Transcorp, the initiative aligns with its strategic goals to strengthen its financial structure and deliver enhanced value to shareholders.

Transcorp has reassured stakeholders that trading in its shares will resume as soon as the reconciliation process is complete.

Before the suspension, Transcorp’s shares closed at N11.05 per share during the last trading session on Wednesday, 9 October 2024. This represented a minor decline of 0.5 percent from the previous day’s price of N11.10. Nevertheless, Transcorp has demonstrated impressive performance in 2024, starting the year with a share price of N8.66, marking a 27.6 percent increase in its stock value.

The suspension of trading is seen as a routine measure to facilitate the restructuring, with market observers anticipating the resumption of normal trading once the process is concluded.