Key questions:
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What is Transcorp plc’s financial performance?
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How will the changes in the power sector make generation companies more profitable?
A billionaire buys a block of a company’s shares, and suddenly, that company becomes the hottest thing on the street, with every stock trader speculating and scurrying to get in on the action.
Last week, one of Nigeria’s prominent billionaires, Femi Otedola (aptly nicknamed Ote$), acquired 5.52% of shares (culminating in about 2.245 billion shares) in Transcorp plc, whose group chairman is Tony Elumelu, making Otedola the largest single individual shareholder.
It’s safe to assume that becoming a billionaire requires at least some understanding of making and keeping money. So, it’s reasonable to think that replicating a billionaire’s moves will take you one step closer to becoming one yourself.
As of 19th April, Transcorp was the most traded stock on the NGX. Its share price has risen 68%, from ₦1.40 to ₦2.35 per share in the past week since the acquisition was announced, an average of roughly 10% per day.
Similarly, when Geregu, Otedola’s power-generating company, went public late last year, the stock debuted at ₦110 per share but rose to ₦120 the next day. It currently trades at about ₦300 per share, and in Q1 2023, it was the 3rd best-performing stock on the NGX.
This “billionaire effect” on the stock market isn’t exclusive to Nigerians. Warren Buffet contributed to Occidental Petroleum’s share performance
