It has finally opened!!! Transcorp is now offering to we Nairaland users and the world @ large, 8 billion ordinary shares of 50kobo each @ N7.50 per share!!!

Now, considering all the political propaganda and lofty promises surrounding this company, what d y'all feel. Please let's know your opinions so we can all make wise investment decisions.

Urs faithfully,
Flint.

Flintz

Pls NOTE:

I am not trying to discourage anyone from getting shares from TRanscorp but I always wonder why companies who sell shares at a very high price and those ho sellls shares at a relatively lower price usuallly have this .50k per shares?

I expect an increase in the amount to reflect on the Higher. Do you have any Idea why it is like this?

Hey nazzyon, i think the .50k reflects the par value of the shares being offered to the public. For example, Transcorp offering 8billion ord shares of .50k each implies a par value of N4billion (i.e. you multiply the 8billion units by the .50k). Hence if the par value is .50k, and they are offering shares at a price of N7.50, it means they are offering it at a premium of N7.00.
However, the shares are actually being offered at a discount, if you compare it with the current market price (which has been placed on technical suspension b'cos of the PO).
If there is ny1 more knowledgeable on this issue, kindly help nazzyon!!
Cheers, Flint.

Thanks Flintz

Ciao

before investing PLEASE talk to your LAWYERS AND YOUR STOCKBROKERS, and ask them to give u a very honest opinion about it. xcept u want to follow daddy showkey, its ur choice. the question u should ask is the regulatory framework and why would transcorp flaunt all the rules before it was registered. ask very well about the phrase cheabol and also ask why ndi okereke broke her 5 yr rule before a stock can come into the market. is it to avoid the fact that obj is leaving[ny GODS GRACE] In 2007. lets ask before investing. if they calm u down bout all these then buy as much as u can. ciao

This shares stuff's a little confusing, what do they mean by 8 billion shares of 50kobo @ 7.50 per share?please explain it to me like i'm a 3yr old.

@tayoccu

8 billion shares - They are making additional 8 billion shares available in the stock market for the IPO.
This is what is available for purchase at the specified IPO price.

50k - Is the par value per share, meaning no matter how bad things may go, that is the lowest the value
of a share can ever get to. Please ignore this, its not relevant for what you need to do or not do at this
point on.

N6.00 - Keep this figure in mind because you will need to understand what I will say next. This was
the introduction price, meaning after the company did the evaluation of its assets and projections of
possible earnings, this was judged to be the fair market price for each shares.

N9.71 - As I said earlier, the share opened at N6.00 on introduction, however, due to demand, N9.71
was the last trade price before the shares were placed on technical suspension to allow the IPO take
place.

N7.50 - This is the IPO offer price. Meaning, even though, the share stopped trading at N9.71, the
company is offering each shares for sale in the IPO at a discount of N2.21. Meaning, if you buy any
share at N7.50, they are actually worth N9.71 once the IPO is over and regular trading begins. Of
course things can go up or down from that point on depending on demand and supply for the shares,
and company's performance as promised or projected in their prospectus.

Hope that helps a little.

Now this company is shrouded in so much controversy. More or less like buying PDP shares.

Buying PDP shares? That's funny! But you know what, PDP owns Nigeria currently.
I am sure most PDP members are not complaining right now, would you rather this
guy buy AC shares or ANPP (I think) shares? Combined, those other shares are no
match for PDP shares, regardless of your market evaluation method, that is hook or
crook. LOL.

I am sure this guy must have heard all the controversies surrounding Transcorp, its
hard to miss if one was actually living in Nigeria. A company that was birthed by the
President's vision and involvement is sure to attract such. Having said that, do your
self a favor by picking up a few shares - I belive N7500 can get you started.

I don't have a crystal ball, but in the near future Transcorp will make some people rich
and will make some rich people richer. When in doubt, keep in mind that the biggest
banks in Nigeria are also some of the biggest shareholders of Transcorp.

I believe the following ties in with what I just described above as per the value of shares of the
political parties. If you must invest in the shares of a political party, then PDP is it, or Transcorp
@abhosts will put it.

http://www.tribune.com.ng/03012007/politics.html

Iyke-D:

Buying PDP shares? That's funny! But you know what, PDP owns Nigeria currently.
I am sure most PDP members are not complaining right now, would you rather this
guy buy AC shares or ANPP (I think) shares? Combined, those other shares are no
match for PDP shares, regardless of your market evaluation method, that is hook or
crook. LOL.

I am sure this guy must have heard all the controversies surrounding Transcorp, its
hard to miss if one was actually living in Nigeria. A company that was birthed by the
President's vision and involvement is sure to attract such. Having said that, do your
self a favor by picking up a few shares - I believe N7500 can get you started.

I don't have a crystal ball, but in the near future Transcorp will make some people rich
and will make some rich people richer. When in doubt, keep in mind that the biggest
banks in Nigeria are also some of the biggest shareholders of Transcorp.

Transcorp made me a millionaire
i invested in private offer wen i was #6.00
now am smilling to d banks go get urs

I am wary of Transcorps shares because of its political links.If u could not invest during the private offer ,it is probably not safe to invest now unless u only intend to hold it for a few months

@4play,

I understand your wariness, but like I said keep in mind that First Bank, UBA, Zenith, Union Bank and a host
of others are some of the biggest investors in the company. The political risk for Transcorp was more an issue
when it was not listed. Now its open to every dick and harry. You can't accuse it of being an elite club for the
rich only. At the end of the IPO, you can bet that the number of shareholders will multiply easily by a factor of
10 from the current 2500. There will be a mad rush among people who were unable to raise the minimum N1.2
million needed in the private placement as they can invest as little as N7,500.

A lot of the so-called political risk facing Transcorp is over-blown. What will a hostile government do to it? The
worst they can do is withdraw whatever licenses (refinery, etc) that they might have been promised. Big deal.
They can't even begin to undo the NITEL deal, on what basis? BPE, a government's agency approved the deal
and have since pocketed Transcorp's money. Or is it the Transcorp Hilton Hotel? If I remember correctly, the bid
then was supposed to be very competitive - they stepped in after the initial winner failed to pay up. Or is it the
Oil Blocks? Well, Transcorp is not the first Nigerian company to bid for Oil Blocks. As long as they paid for their
bids what is the story there? They have been x-rayed by the EFCC and they still don't have any bombshell to
report - no tainted public funds. Even Obasanjo had to take a loan to buy whatever shares he might have had
before divesting.

Like I said earlier, Transcorp is not going anywhere because its now a publicly traded company. Private investors
funds including loans from banks were used to acquire whatever assets they now own. Any attempt to railroad
the company will cause serious ripples in the Nigerian capital market and banking system that will be felt outside
of Nigeria. Such illegal action will cause more harm than good to the country's investment climate. Transcorp is
here to stay so guys get use to the idea, whether you like it or not. While you are doing that, don't forget to
invest because you will regret not doing so in the near future.

What is the business of Transcorp?

Its a holding company. Ever heard of GE (General Electric) or even GM (General Motors)?

GE owns NBC and GM is the world's largest automaker, and a host of other investments both multi-national companies are engaged in all over the world.
What business is Transcorp currently engaged or looking to get into?

NITEL/M-TEL and Hilton hotel abuja

they want to get into energy,agro-business,telecoms entertainment

TransCorp Ideas

@topic

Thanks so much for posting this thread.

@everyone

how do naijas in the diaspora get to buy transcorp shares ? I know IBTC sells theirs on their
website, but I don't know about transcorp.

Thats the question everyone has been asking, they just can maximise the business, they are always local champions 

For an international company, they should atleast show it

mod:

The historic N60 billion initial public offering of Transnational Corporation of Nigeria Plc. opens today. The eagerly awaited IPO is packaged as a special Christmas gift from the business group to Nigerians with the resonating themes ‘100% Nigeria . 100% World Class.’ and ‘It’s Yours. Take it Back.’ TransCorp currently owns the TransCorp Hilton Hotel, Nigeria’s most successful lodging, conference and leisure location, and NITEL, the leading telecommunications company. The company is offering 8 billion ordinary shares to the public at N7.50 each. The issuing houses to the offer are Union Capital Markets Limited, UBA Global Markets, Wema Asset Management Limited, Skye Bank Plc., Intercontinental Capital Markets Limited, BGL Limited and Vetiva Capital Management. The offer closes in the February 2007. The prospectus and application forms, as well as instructions for investors resident outside Nigeria will be available on the TransCorp website as from the first week in January, 2007.
Thursday, December 28, 2006

LoverBwoy:

Thats the question everyone has been asking, they just can maximise the business, they are always local champions

For an international company, they should atleast show it

mod:

You are so right !

Thanks so much LoverBwoy 

Did I hear someone say NITEL/MTEL? On a million occasions Transcorp failed to meet the payment deadline to acquire 75% of the company. They have also been unsuccessful at resolving the issue of  pensions and gratuities of the company staff. Only recently, Dangote and most of the bank chiefs that were onboard resigned.

To many stock lovers, this looks like a great prospect, but I am skeptical. Now what if the AC/ANPP Alliance wrests power from the PDP in the April elections , what will become of Transcorp? Your guess is as good as mine.

I invested in TransCorp during the private placement and was pleasantly suprised at the returns.

Before I invested, I heard one prediction of gloom after another. As soon as they listed successfully, same doubters scrambled and are still scrambling for TransCorp shares.

I have come to appreciate that different people react to risk in different ways. Whilst most people are risk averse, some understand that risk can be diminished by a deep understanding of the terrain in which you operate.


My advice for the doubters out there - Invest In TransCorp IPO and you will not regret it. Even if the AC, ANPP were in power, neither Buhari nor Atiku will touch TransCorp even if they could.

OBJ's, interest is already, or will shortly be divested. 200 million Naira is insignificant given the value of this company. There are so many more bigger fish in TransCorp.

I foresee significant capital appreciation of TransCorp shares this year, although dividend payout will take a while. So if you invest for dividend, you may be best served in Zenith, GTB, Dangote etc shares.

To the doubters, if you are looking to find faults with Transcorp, you will find plenty.
First of all, the company has been in existence for less than two years, every move
they make is criticized and now someone is asking why are they not acting or behaving
like a world class company? Hello, how do you build a world class size company? It
takes money and time, not thin air!!!

@abhosts

They missed making payment on NITEL/MTEL once (I don't see how that translated to
a million times if you are not being intentionally mischievous) and with BPE's approval
were able to seal the deal. Its all history and you know that! Now you also blame them
for BPE/Federal Government not settling the workers pensions and gratuities?

If you don't want to invest, move on and buy something else that will be safe should
ANPP or AC win the election. Although I can tell from your tone that you real concern
seems to be more of disdain/distrust for Transcorp than the political environment.

The fact is that many people, rather than be objective,  base their views on attention grabbing headlines - championed by tabloids like the Sun newspaper and commentators whose intentions are dubious at best.

But this ignorance creates avenues for those objective enough to identify trends and position themselves with emerging oportunies.

Therefore, whomever chooses to can idle away on the side of mediocrity at their own expense.

Transcorp

I won't lie to you, the market sentiment on Transcorp is hard to measure, I sit here in London glued to BENTV seeing Transcorp adverts scrolling the TV; I can't pretend not to be interested in the fanfare surrounding of the last few days.

I remember in June 1999 when Ariba a US quoted stock debuted on the nasdaq amide the same kind of funfare and roadshows, and I also remember what happened to the stock price when the market boom was over!

In stockmarkets there where winners and losers and like in any marketplace there is always money to be made and likewise suckers are born everyday, which are you?

full article here

@Nairamar,

I understand your sentiment. I also remember VA-Linux (stock traded at about $300 at one point)
but it has since vanished. I am not sure if I am familiar with Ariba, but having said the above it may
be a stretch to compare a VA-Linux and other stocks that vanished during the internet boom with
Transcorp. If anything at all, Transcorp has acquired some hard and tangible assets that are making
money already (not necessary profitable).

There are risks associated with any venture, each individual has to decide their level of risk tolerance.
However, determining one's level of risk tolerance also requires getting factual information not general
sentiment or basing it on the political anthem of the day.

If whatever reason PDP loses the election (hard to imagine at this time) to ANPP or AC, you can bet
that same administration and the people close to it will set up their own Transcorp too. As long as
there are no concrete proof that public funds have been looted and invested into Transcorp, the
political risk is very much lessened.

What? Do these guys call Aso Rock every morning before they go their offices at Transcorp, is that what
they will miss when OBJ is gone?

U know a stock will crash when everyone is talking about it! Heck even a couple of my former female shoolmates are talking about it

Often a stock is only worth buying when noone knows about it

Unless u only intend to hold the stock for a few months i don't think it is worth buying

Who was it again that said that he knew he had to sell as soon as his shoe shiner started to talk about stocks?

@ Nairamar,

I too followed the Ariba experience quite closely (as I was heavily involved consulting in these sector in Europe and North America), and can offer one fundamental difference between Ariba-Corp and Trans-Corp.

Ariba, was a start-up supply chain/ Supplier Relationship Management,  End-to-End spend solutions provider with relatively low asset and application base compared to the establised players in the sector - Oracle, PeopleSoft, i2 Technologies, SAP etc. These companies had advantage of leverage that companies like Commerce One and Ariba simply didn't.

Nitel on the other hand, has an impressive asset column in Mtel, Nitel, in a sector that is perhaps the fastest growing in Nigeria, and indeed, Africa.

What was clearly lacking in Nitel/Mtel was effective management. So take a look at the management profile and blueprint of TransCorp and do the maths.

Has anyone tried to figure out why MTN, Globalcom, Celtel are not on the Nigerian Capital Market?  The potential for returns in this sector is huge, especially given the debth of the Nigerian market. I'm bulishly optimistic that after turn-around of Nitel/Mtel, perhaps in 3 years time, it will be a N50 - N100 stock.

Let's put aside the overstated political exposure of this company, it's unlikely to affect it's long-term prospects.  The emphasis should be on the latent assets, management and opportunities that can be exploited.

@oshkosh

I couldn't have stated the above any more clearly.

NITEL,MTN and Globacom are not on the capital market because it is not liquid enough

The money they can expect to raise is not sufficient to justify the loss of some control and everything else connected with listings

i am not confident that NITEL can be turned around enough to justify the expectations on Transcorps.

The wireless telecoms sector is reaching saturation point,MTEL will be late in the game

As for Fixed Telephones,it needs huge investment which Transcorps might not be able to raise without exposing themselves to a huge debt load which will have negative consequences for their share price

Depth of the Capital market is always going to be a consideration, but I'm convinced it's the need to retain complete control that is the basis for their decision not to expand ownership to Nigerians.

Whilst there is nothing wrong with a liberalized economy that strongly encourages FDI, I'm glad that Nitel / Mtel is owned and managed by Nigerians with a clear vision. This will also help mitigate capital flight.

I have to say I'm sometimes dismayed at our tendency to undermine our very own. TransCorp deserves our support, if for no other reason than the fact that it is a Nigerian owned entity with a commendable value proposition that will benefit Nigerians.

There are so many foreign owned companies in Nigeria that are here strictly for the bottom-line with no strategic interest in the development of our nation, yet we'll sooner dole out awards to these companies than condemn  them in anyway. Until it becomes Nigerian owned.

As far as investments go, Nitel has a strategic advantage in it's asset. If effectively leveraged, I see no reason whatsoever why it will not prosper with time. Agreed, Mtel has some catching up to do,  but the target is realistic. Even a 15% - 20% market share in two/three years will be a qualified success. 

I believe this is achievable.

There will always be believers and unbelievers in any undertaking. Believers assume the risk and
part with their money while unbelievers stay on the side-lines. The only way to prove either party
right or wrong in this case is for Transcorp to deliver or not deliver.

If they fail to deliver, we will say to ourselves " ahh, that was close" and move on with our lives.
However if they deliver, it will be the best single investment decision that some seasoned and
novice Nigerian investors will have ever made in their entire lives - yours including. Only time will
tell.

I know if BT or AT&T were the ones that bought NITEL and MTEL you can bet all these nay sayers
will be wishing there was an opportunity for them to invest. Its always so when its us, I suppose.
I am not begging anyone to get invest, please do what you are comfortable with, but that doesn't
mean you have to knock the idea.