Market Liquidity

Transcorp aims to raise N7.5 x 8,000,000,000(eight billion)shares which is N60,000,000,000 more or less US$500 Million or even more fashionable phrase of half a billion dollars!

Now that's a lot of money anyway you look at it, I'm sitting here thinking, what's the effect of the Transcorp IPO to the liquidity of the marketplace. Mopping up this much liquidity from the market would definitely have some kind of effect on the marketplace negative or positive I don't know but what I do what to know is who's underwriting the offer and what happens if it's under subscribed?

Google raised six times the same amount but Google operates in a marketplace that's many many times more liquid and with greater capitalisation than the Nigerian Stock Exchange(NSE).

My personal sentiment is in favour of Transcorp but, I'm a bit concerned about the lack of fundamentals available. The current portfolio of Transcorp Hilton, MTEL and NITEL don't value at US$500 Billion so there's a risk/value proposition here.

Usually, your risk/value proposition is backed with some kind of cashflow or forward earnings proposition, I don't see any being mentioned or relied upon!

Like I said I'm all for it but, it'll be nice to know what the juju is!