More Companies Delisted At NSE

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As the harsh economic situation in Nigeria continues to bite harder, more companies have delisted at the Nigeria Stock Exchange (NSE) due to lull in trading activities and other regulatory rules.
According to NSE record, delisting which started in 2002, came to a climax in 2016 when 15 companies were delisted mostly on regulatory grounds.
This continued in 2017 with 6 companies; Beco Petroleum Products Plc MTECH Communications Plc, MTI Plc, UTC Plc, Ashaka Plc, Avon Crown Caps and Containers Plc delisted both on regulatory and voluntary grounds.
In 2018, four companies; Seven-Up Bottling Company Plc, African Paints (Nigeria) Plc, Afrik Pharmaceuticals Plc and Paints & Coatings Manufacturers Nigeria Plc were also delisted at the State Exchange on voluntary and regulatory grounds.
Delisting trend has also continued in 2019, as Great Nigeria Insurance Plc (GNI) voluntarily delisted the entire issued share capital from the daily official list of NSE.
Giving the reason for delisting, the company said that over the past five years, the company had little or no trading activity on the shares held by the minority shareholders.
The company also said that there was a considerable fall in the trading volume from March 2017 to March 2018, adding that the shareholders were not benefitting from continuing listing.
The company’s Chairman, Mr. Bade Aluko said delisting would afford them the opportunity to carry out restructuring exercise.
NSE has over the years wooed companies to list at the state exchange to grow their capital base and also bring in shareholders which will in turn help in improving the economy of the country.