Hi Business GURU's in Nairaland,

Can anyone get me informed on how lucrative the Transcorp IPO is? I am afraid of the reality of this offer. Could this be a gimmick to acquire fund from Nigerians and use it to pay Nitel workers?

Please, what's your view about this offer!

i have also been very skeptical about tho transcop ipo, i`ve heard all sort off fears expressed  top of which is the likelihood that the coy may not do so well after 2007, especially when `the powers that be` fail to maintain power after may 27.

IF ONLY U KNOW BETA
i'll paint you d picture
10 years down the line because u bought transcorp shares @ 7.50naira you need some small change to buy a new ride or watever u sell just 2000 units of transcorp shares and get the rest from loan or watever means  and voala heres ur ride!

####
but the sad story is u're still skeptica l and u never bought transcorp shares den bam in ur face after the IPo it went record sky high beating all proponents of doom by a wopping 500% becoming the leader of the pack den u want to buy. wise guys like me who already ve like X00,000 units sells to dumb persons like u  smiling all d way to my bank acount . Now i can finnally get my haus furnished in Benuvista apartment in lekki with my toyota cmry 2010 model all PROFITS frm d initial private placement in may wen it was just 6.00naira am still smiling 4 years down d line
D GIST is transcorp is a nigerian idea, u ve to be nigerian-to- d- core to bliv in it bt because u 're not u re excused guess wat ur kids won't forgive u too for not making their lives a little easier when u could ve BOUgHT TRANSCORP(NIGERIAN) SHARES

@Delord, i tort i was skeptical on this but you have to be the biggest pesimist on transcorp i have encountered. and your point of argument is so original. way to go man!!!!!!

@ akindayor, thank for the` turbor morale booster` see you in our lekki neighbourhood in 2010. oh, i can`t wait to see what ur camry 2010 will look like. looking forward to that. am off to my broker`s.

Nairaland Gurus,

Thanks a million for your contributions to my topic "How good is Transcorp". Gonna take to your advises, and visit my Broker immediately.

Cheers,

As for Transcorp this is my opinion

They have 3 investments at the moment 1.Oil & gas 2. Nitel 3. Transcorp Hilton

Now lets address d investments one at a time

1. Oil & gas: they must have a huge loan to be able to acquire the oil blocks and it will take another round of huge investment to get the block to produce and eventually break-even

2. Nitel / Mtel - With the present state of Nitel / Mtel services, its going to take a lot of funds to be able to turn around the fortunes of these companies

3 Transcorp Hilton - The only viable investment at the moment but that cannot generate the kind of loans these moguls have taken

Summary: it will take a very long time for this shares to mature & that is if another govt does not wake up to say NO!! to privatization. D patient investors can try but the street-wise ones have moved on to Dangote. It is possible that another IPO will come out for Nitel / Mtel as a spin-off later in the year. Then you can buy

To answer your question, I don't know how good Transcorp is, but a lot
of people seem to think its "good" if this story is true,

https://www.nairaland.com/nigeria/topic-2703.192.html

Here is the correct link. My apologies. . .

http://allafrica.com/stories/200701260385.html

@Iyke-D,

We both know TransCorp is great value at N7.50 and I'm convinced it'll hit N15 (@ least) by EOY 07. I'm also convinced the IPO'll be over-subscribed.

But for the doubters out there, please don't vest borrowed funds into TransCorp IPO, wait and join the rush later on when the 'Fundamentals' are there for 'ALL' to see and the risks significantly reduced.

Besides, we'll need this rush to push the price further up north and maybe make multi-millionaires of today's investors.

Thank you.

@oshkosh

Ouch! - I know you didn't. Man - you had to go there, right?

It would not surprise me at all if the price is trading in the N15 to N20
range by end of 2007, irrational exuberance or not, hey what is life
without some exuberance?

Transcorp offer oversubscribed.
_{See full article: http://www.stockmarketnigeria.com/?p=286}

This makes me wonder:
a) How many Nairalanders bought into Transcorp anyway?
b) Why aren’t there any mechanisms in place to avoid oversubscription in the first place? Why extend the offer period of the IPO then? Cuz it’s really not fair to be told the shares were oversubscribe and have to go through a whole long process to get a refund.
c) Did the whole Transcorp IPO seem shady?


What does Nairaland think? Is this just another example of Nigerian incompetence or is something more going on here… (According to some conspiracy theorists I know )

BT Terminates Agreement with Transcorp
• IPO undersubscribed
From Ijeoma Nwogwugwu in Abuja, 04.10.2007

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British Telecom (BT) has pulled out of the technical services agreement with Transnational Corpora-tion Plc (Transcorp) for the management of NITEL and its mobile subsidiary, MTel. Transcorp, with BT as its technical partner had acquired a 51 per cent stake in NITEL last year under the privatisation exercise handled by the Bureau of Public Enterprises (BPE).
But in a letter to Transcorp, BT cited the unavailability of working capital needed to turn around NITEL and MTel, and the lack of adherence to corporate governance principles by the companies’ management and their boards as the reason for its decision to withdraw from the agreement.
The decision by BT to terminate the technical services agreement it has with Transcorp could not have come at a worse time for the Nigerian conglomerate which is yet to overcome the disappointing returns from its initial public offering (IPO).
Capital market analysts estimate that the Transcorp’s IPO may have been undersubscribed by as much as 70 per cent.
Under the technical services agreement, BT was expected to have provided technical and managerial expertise to Transcorp for one year in the first instance, but the contract comes up for review by both parties every six months.
In exchange for its services and upon meeting key performance benchmarks that had been agreed under the contract, BT was supposed to have been paid a fixed fee and a performance bonus by Transcorp.
In addition, salaries of its two contract staff seconded to run NITEL and MTel for the duration of the technical services agreement would have been met by Transcorp.
Transcorp had also committed to raising substantial funds from banks and the capital market to inject into both telecom firms for their network expansion programmes and in order to meet other commercial obligations.
In that regard, Messrs Steve Brookman and John Weir were seconded by BT as CEOs of NITEL and MTel respectively in November last year to oversee their day to day operations.
Ms Funke Okpeke, meanwhile, was employed by Transcorp and appointed Chief Operating Officer (COO) of NITEL.
But ever since Transcorp took over NITEL, and by extension its mobile subsidiary in November, the reconstituted boards of both companies have been enmessed in internal wrangling among its members, on the one hand, and disagreements with the British CEOs on how best to manage the companies on another.
Specifically, John Weir, who was appointed CEO of MTel, has been at logger heads with the company’s chairman, Gboyega Olulade and other board members over the selection of equipment vendors for the company’s network expansion programme.
Weir was said to have shown a preference for the appointment of Huawei and Motorola, while Olulade was pushing for Ericsson and other vendors. Weir also took umbrage over the appointment of the new Chief Technical Officer (CTO), Davidson Anene, by Olulade without his input, and is said to have refused to recognise Anene as the company’s CTO.
This got to a head last month when MTel’s board comprising Transcorp members and Federal Government representatives terminated Weir’s appointment and gave BT four weeks within which it was expected to send his replacement.
His dismissal did not sit well with BT which was already getting disenchanted with Transcorp’s inability to deliver on its promise to provide working capital for NITEL and MTel, thus compelling it to pull out of the agreement in its entirety. Both companies are also riddled with massive debts owed banks, equipment suppliers and unsettled interconnect fees.
The void created by BT’s withdrawal could not have come at a worse time for Transcorp. The company’s IPO held between December and January this year is believed to have been undersubscribed by 70 per cent.
Even a two week extension granted by the Securities and Exchange Commission (SEC) to Transcorp which embarked on road shows to the UK and South Africa to shore up investors’ participation in the offer did not help matters.
Capital market operators are of the view Transcorp grossly underestimated the capacity of the market to absorb another major public offer right on the heels of the Dangote Sugar Refinery Plc IPO.
According to a market analyst, “the timing for Transcorp’s offer was obviously not right. It came at the end of the year when most investors were cashing in to raise money for the yuletide season. Besides, it came immediately after Dangote’s IPO which had soaked up most of the investible funds in the market.”
Transcorp, he posited, should have bid its time and waited to go to the market later this year when investors would have had a clearer picture on the company’s direction.
The undersubscribed offer is already impacting on Transcorp’s share price which has been on a downward spiral since the technical suspension on the company’s shares was lifted twice by the Nigerian Stock Exchange.
A few weeks after the IPO had closed the Stock Exchange lifted the suspension placed on Transcorp’s share which took a hit in four days of trading to fall from N9.71 kobo per share to N8.34 kobo per share.
Without prior notice to stock brokers, the Exchange placed another technical suspension on the shares, which was ostensibly done to stop the free fall. However, the official explanation given by the Exchange for the second suspension was that it had done so to enable the Issuing Houses to the offer conclude collation of returns.
Since trading resumed last week, Transcorp’s shares slumped again, closing in at N7.93 kobo a share by end of trading last Thursday.

With all the negative news and 75 million odd share waiting to be dumped as at Tuesday's trading day, only 947,316 shares exchanged hands leaving the stock to close at N7.54.

Miraculously (if such a thing exists in the stock market), the stock has closed at N9.71 after trading 3,011,808 shares. Today's low/high price was the same N9.71 how miraculous can this be for Transcorp Something does not add up. Dare I suggest insider trading? And all this in 69 trades only!

Let's see where all this is leading to

Thanks everone for your contribution to this topic.
For now, can you see that Transcorp is still very silent! Even the stock broken firms do no know the next line of action.
We all have to be on the lookout. This is our own very dear country Nigeria and we must not be deceived by the power that be.

I love you all.

God bless!

those who rushed transcorp IPO are now looking up to heaven,
praying and waiting for mesaiah to come,after burning their fingers.