In Major Clean-up, NGX Delists 14 Companies for Non-compliance

Kayode Tokede

Niger Insurance Plc, Resort Savings and Loans Plc, and RAK Unity Petroleum Plc  are among the list of 14 companies that are delisting from the Nigerian Exchange Limited (NGX) this year over non-compliance to post listing requirements.

The Exchange recently announced to the investing public the delisting of three companies from its daily market activities, failing to submit 2023 financial year results.

The Exchange officially delisted three companies, according to a statement signed by head of the issuer regulation department at NGX, Godstime Iwenekhai.

Goldlink Insurance Plc, Medview Airline Plc, STACO Insurance Plc, Standard Alliance Insurance Plc, Greif Nigeria Plc, Union Dicon Salt Plc, and Austin Laz and Company Plc, are companies delisting from the Exchange this year.

Others are: ASO Savings and Loans Plc, Union Homes Savings & Loans Plc, Capital Oil Plc  and  The Tourist Company of Nigeria Plc.

The board of NGX RegCo, the regulating body of the Exchange at a meeting in June 2024 had approved the commencement of the delisting process of these 14 companies.

THISDAY investigation revealed that most of the affected companies are faced with operational and regulatory bottlenecks, making it difficult to submit audited result and accounts on the Exchange.

Until it was delisted, the stock price of Medview Airlines on the floor of the NGX has not moved below or above N1.62per share in the last two years.

As at October 15, 2021, data obtained from the local bourse disclosed that the company recorded 0 trade and 0 volume within the period under review.

Also, the airline has been among companies listed on the NGX’s free float deficiencies of 14.16 per cent.

Chairman of the airline, Sheik Abdul-Mosheen Al-Thunayan, had blamed the performance on political tension and tight liquidity.

On the other hand, RAK Unity Petroleum completed its liquidation process on September 26, 2023 and has since been dissolved “and on that note no longer needs to remain listed on the platform of NGX”.

THISDAY further gathered that, The Tourist Company of Nigeria Plc, Standard Alliance Insurance Plc, have failed to submit 2020 audited results.

Union Homes Savings & Loans Plc, Aso Savings & Loans Plc have not submitted over six years audited result and accounts to the Exchange.

The NGX said the delisting of the three companies that took effect on July 18, was because the companies were operating below the listing standards of the exchange firm.

“Trading license holders and the investing public are hereby notified that pursuant to the provisions of Clause 15 of General Undertaking, Appendix iii Of the Rule Book of The Exchange, 2015, Part II,” the statement reads.

“Issuers Rules Delisting the process which states that; to recognize that Council reserves the right to remove the name of a company from the Official List of The Exchange at its absolute discretion and may, if it considers there is insufficient public interest in the company, viz, insufficient shares in the hands of the public, or

“Any of the foregoing terms and conditions are not complied with, or the company becomes a subsidiary of any other company.”

The Nigerian bourse also said the companies’ securities “are no longer considered suitable for continued listing and trading in the market”.

In the statement, the NGX said the operating licences of Niger Insurance and Resort Savings and Loans have been revoked by their primary regulators, National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN) “effective 21 June 21, 2002, and May 24, 2023, respectively”.

Deap Capital Management & Trust Plc and Multi-Trex Integrated Foods Plc are the only two companies undergoing delisting watchlist.