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NSE delisted 22 firms for failing to meet up post-quotation standards—Official

Fresh details have emerged on why the Nigerian Stock Exchange (NSE) expelled not less than 22 companies between 2016 and now.

A top official of the Exchange who spoke on grounds of anonymity on Wednesday in Lagos averred that “The decision was taken to protect the integrity of the Exchange and further give warning signals to firms that do not consider the feelings of their shareholders on their operational activities”.

“There are two circumstances upon which a firm can be delisted. These include voluntary and compulsory delisting processes.

“First of all, delisting from the market activities is the process of removing a company from the official list of the stock either voluntarily or by compulsion.

The official added further that under a voluntary delisting window (which seldom happens), a quoted company can decide to delist from the exchange due to reasons such as merger/acquisition.

On the other hand, the NSE can compulsorily delist a firm when it fails to meet up with post-quotation standards.

The exchange, however, listed only five new companies: The Initiatives, in 2016, while Transcorp Hotels, Global Spectrum Energy Service, Jaiz Bank and Med-View Airline were listed in 2017.

It would be recalled that the Chief Executive Officer of NSE, Mr Oscar Onyema, had few weeks ago averred that companies in their life cycle would be listed, while others would be delisted over time.

He added that the development was the reality that exchanges around the world experienced, saying “Companies will delist for different reasons from voluntary to regulatory delisting, mergers and acquisitions and other things that would cause them to delist.

 “Our job is to make sure that we make it easy for companies to come in and if they want to leave, that they leave in an orderly manner.

“So, what we have tried to do with our listing rules in the last one to two years is that we have tried to enhance the rules to ensure that companies behave in an orderly fashion,” Onyema said.

The delisted companies included Cappa and D’Alberto, Intercontinental Bank Preference shares, IPWA, G Cappa and West African Glass Industries.

Others were Investment & Allied Insurance, Alumaco, Jos International Breweries, Adswitch, Rokanna, Vono Products, Lennards Nigeria, P.S. Mandrides & Company, Premier Breweries, Costain, Navitus Energy, Nigerian Ropes, Beco Petroleum, M Tech Communication, MTI, UAC and Ashaka Cement.

Also, Seven-Up Bottling Company, African Paints and Afrik Pharmaceuticals were delisted in 2018.