NGX Delist Medview, Capital Oil, Goldlink for Non-compliance to Post Listings Requirement

Kayode Tokede

For non-compliance to post listings requirement, Medview Airline Plc, Capital Oil Plc and Goldlink Insurance Plc have been delisted from the Nigerian Exchange Limited (NGX).

The three firms, among others, have failed to submit result and accounts on the Exchange.

THISDAYinvestigation revealed that the NGX will soon delistSTACO Insurance Plc, DN Tyre & Rubber Plc, Multi-Trex Integrated Foods Plc for failing post listings requirements.

It was learnt thatMedview Airline has not submitted between 2019 -2023 result and accounts to the investing public, while Goldlink Insurance has failed to file audited financial statements for 2020 – 2023. On its part, Capital Oil has failed to submit its audited financial statements for 2018 -2023.

As at the time of delisting, the market capitalisation of Medview Airline stood at N15.8billion, while Capital Oil, Goldlink Insurance market capitalisation was N1.17 billion and N909.99 million, respectively.

Medview Airline in its interim result and accounts for the full year ended December 31, 2019 reported N220.38million profit as against N3billion loss reported in 2018. The value of Medview Airlines on the floor of the NGX has not moved below or above N1.62 in the last two years.

As at April 26, 2024, data obtained from the local bourse disclosed that the company recorded zero trade and zero 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.

Goldlink insurance had joined other insurance firms declared technically insolvent as its total assets couldn’t cover its liabilities, which means they could be acquisition targets for firms that have strong capital bases.

The insurers are reeling from deteriorating underwriting performance as evidenced in huge and burdensome claims, underwriting, and management expenses as an economic downturn and difficult operating environment continues to hobble revenue.

Auditors have issued warnings that some of them are on the brink of bankruptcy, issuing a qualified report, signaling their financial statements have been stigmatised.

In 2023, pension Reform Act PRA, Federal Government Pension Transitional Arrangements Directorate (FGPTAD) set up as an independent pension department for the public service of the federation had filed a winding up petition against Goldlink Insurance over the inability of the insurance company to pay N1.24 billion insurance contribution.

In 2018, sub-committee of the House of Representatives on Capital Market and Institutions had ordered the Securities and Exchange Commission (SEC) to takeover Capital Oil for allegedly defrauding shareholders of more than N5 billion.

Speaking on the latest delisting, Chairman, Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, urged the management of the Exchange and SEC to always protect shareholders and delist moribund companies on the bourse.

He noted that these companies have not contributed to the stock market communities neither have they remain in operations in developing Nigeria’s economy.