Will more power firms list on NGX?

Transcorp Power's recent listing on the Nigerian Exchange has caused a stir in the market, with the company's share price surging by over 30 percent in just three days. Victoria Ejugu, an analyst at Vetiva Research Institute, provided insight into the company's performance and the potential for future growth in a recent interview with CNBC Africa. Ejugu highlighted the strong growth of Transcorp Power over the past five years, averaging around 10 percent. She emphasized the significant supply-demand imbalance in the power market, presenting an opportunity for the company to increase its revenue performance. The analyst expressed confidence in Transcorp Power's prospects for the coming years, expecting this growth trajectory to continue. Discussing the company's plans for the future, Ejugu noted Transcorp Power's interest in expanding into the electricity market, specifically focusing on last-mile distribution. She discussed the positive impact of private investment in the electricity sector, emphasizing its role in driving economic development in Nigeria. As the company ventures further into the value chain, Ejugu anticipates continued growth and development in the sector. The listing of Transcorp Power on the Nigerian Exchange signifies a growing trend of power firms going public, seeking to capitalize on the opportunities in the market. With the success of Transcorp Power's listing evident in the rapid increase in its share price, other power companies may consider following suit to attract investment and fuel their expansion plans. In conclusion, Ejugu's analysis paints a promising picture for Transcorp Power and the power sector in Nigeria as a whole. The company's strategic positioning and growth prospects bode well for its future performance, while the broader trend of power firms listing on the NGX reflects a positive outlook for the industry.