NGX to Lose N8.69bn in Market Cap as Capital Hotels Delists

Kayode Tokede 

The Nigerian Exchange Limited (NGX) will see its market capitalisation depreciate by N8.69billion as Capital Hotel Plc announced its delisting from the bourse.  

The company announced its voluntary delisting from the Exchange as recommended by the board of directors.

The stock price of Capital Hotels, closed September 25, 2023 at N2.75 per share. The company has 3,160,775,510.00 outstanding shares, representing N8.69billion in market capitalisation. 

The company in a statement obtained by THISDAY said the Exchange approved the delisting application subject to Capital Hotels evidence of opening an escrow account in the Registrar’s name and evidence that shareholders who have accepted to exit have been paid.

The Hotels/Lodging company listed on the mainboard of the NGX in a statement stated that it has opened an escrow account with CardinalStone Registrars Limited and provided sufficient funds to shareholders, who as of August 17, 2023, have accepted the exit consideration of N5 per share which is more than the highest price at which the company traded in the last six months preceding the date of the Annual General Meeting (AGM) where the resolution to delist was passed in line with NGX guidelines.

The company added that the delisting provides the opportunity to strategize for better performance, minimize costs, and stay competitive within its industry.

“The cash consideration will be settled by way of electronic transfer to the respective bank accounts of Shareholders,” the statement added. 

Capital Hotels in 2022 financial year declared loss before tax of N808.23million from loss before tax of N2.6million in 2021. Cost of sales in the year under review was the contributing factor to the company’s loss amid growing revenue by 39 per cent to N5.33billion in 2022 from N3.83billion in 2021.