Nigeria’s Transcorp Hotels, part of the Transcorp conglomerate, plans to start marketing its initial public offering from Sept. 24 to raise 8 billion naira ($48.8 million).
Transcorp Hotels plans to offer 800 million ordinary shares to new investors at 10 naira per share.
The sale will last for a week and the shares will be listed on the Nigerian Stock Exchange on Nov. 5, the prospectus showed.
New hotels are springing up across Africa despite bureaucratic delays and poor infrastructure, seeking to cater to a growing middle class and increasing number of tourists and business travellers.
Transcorp Hotels’ parent company Transcorp, which has interest in power generation, agribusiness and oil and gas, announced plans in July to expand its hotel business in Nigeria to tap into a growing market for business travellers.
Two weeks ago the stock exchange said it had received Transcorp’s application for the share sale. Transcorp Hotels will have a stock market capitalisation of 79.8 billion naira (487.4 mln) on listing.
“Over the next five years, the company will take a phased approach in developing high-end hotels … as well as a convention center and apartment complex,” it said in its IPO document