The Nigerian Exchange Limited (NGX) has announced the suspension of trading in the shares of Transnational Corporation Plc (Transcorp).
The suspension was implemented to facilitate the company’s ongoing share capital reduction process.
In a statement issued to the investing public and trading license holders, NGX explained that the temporary suspension was essential to prevent any further transactions in Transcorp shares while the company’s registrars and the Central Securities Clearing System (CSCS) reconcile their records.
This reconciliation process is a crucial step in the listing of reconstructed shares on the NGX, following Transcorp’s recent decision to reduce its share capital.
The share capital reconstruction aims to consolidate the company’s shareholding structure, a process which typically involves reducing the number of shares in issue while maintaining the same total value of shareholders’ equity.
In this case, the suspension will allow the company to accurately determine which shareholders are entitled to receive the newly reconstructed shares.
The suspension is a procedural requirement, and once the reconciliation process is complete, trading in Transcorp shares will resume.
Transcorp assured its stakeholders that the share capital reduction is in line with the company’s broader strategic goals to strengthen its financial structure and enhance shareholder value.
Before the suspension of trading, Transnational Corporation Plc (Transcorp) closed its last trading session on Wednesday, 9 October 2024, at N11.05 per share on the Nigerian Exchange Limited (NGX).
This marked a slight decline of 0.5 per cent from its previous closing price of N11.10.
Despite this minor drop, Transcorp’s stock has performed strongly throughout the year. Starting 2024 with a share price of N8.66, the company has seen a 27.6 per cent gain in its valuation.