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Transcorp Power increased its free float of available shares trading on the Nigeria Exchange (NGX) to 10.09% in the third quarter (Q3) of 2025, but still lagged rival electricity generating firm Geregu Power, whose free float stood at 18.52% in Q3.
Free float in the stock market refers to the portion of a company’s shares that are freely available for trading by the general public. These shares exclude those held by insiders, promoters, governments, or strategic investors who are unlikely to sell in the near term.
A higher free float means more shares are available for trading, which generally results in better liquidity.
Transcorp Power had 7.5 billion shares outstanding with a free float of 756.9 million shares as at Q3, 2025. The market cap of the free float for Transcorp power was equivalent to N237.68 billion at the end of the third quarter.
Geregu Power by comparison had 2.5 billion shares outstanding with a free float of 463 million shares valued at N528.6 billion at the end of September 2025.
Stocks with a large free float usually experience more stable prices because the larger supply can absorb buying and selling pressures.
Better liquidity makes it easier to buy or sell shares without significantly affecting the stock price, while stocks with low free float tend to have less liquidity, causing higher price volatility with smaller trades.
Free float also affects market capitalization calculations used in stock indices such as the MSCI Nigeria Index, where utilities have a 1.9% weighting and investment funds; as companies with higher free float often have more influence in these indexes.
Geregu Power had a total market capitalization of N2.85 trillion, compared to Transcorp Power’s N2.56 trillion market cap as at October 13, 2025.
Free float also signals how actively a stock trades, influencing investor interest and analyst coverage.
Geregu Power reported profit of N25 billion for the 9-Months period to September 2025, up 3.75% compared to the September 2024 period.
Meanwhile, largest shareholder Femi Otedola further reduced his stake in Geregu Power at the end of September 2025 by about 12 million shares to 76.38%or 1.909 billion shares, from 76.86% or 1.921 billion shares in June.
The stake reduction was done to continue to increase the free float of the stock and improve liquidity.
Free float is crucial as it directly influences a stock’s liquidity, price stability, and attractiveness to investors.
Stocks with higher free float usually have tighter bid-ask spreads, lower volatility, and easier trade execution, while those with low free float may be more volatile and riskier.
Transcorp Power grew its Profit After Tax (PAT) to N68.42 billion in Q3 2025, from N58.4 billion in Q3 2024, representing a year-on-year growth of 17%.
Geregu Power stock has outperformed Transcorp Power this year with its stock returning -0.74%, compared to -4.97% YTD returns for Transcorp Power (as at October 13, 2025).
Geregu and Transcorp Power are the only listed power generating utilities on the NGX.
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