Monday, 23 June 2014 6.55 PM / TheAnalyst
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De-listing of quoted firms from the daily official list of The Exchange is not a casual decision taken by all parties concerned,with obvious implications for invstors in the company’s stock.
The process can either be initiated by the company itself or the regulators.
If the delisting is voluntary i.e. initiated by the company, the directors meet and pass resolution(s) to de-list the company. Upon approval, the company is usually expected to make an offer to buy back its shares held by the public
In the case of a delisting by the regulator, it must be seen as the ultimate sanction on a quoted entity for persistent non-compliance with the bourse’s post-listing rules.
This morning, The Nigerian Stock Exchange made public a June 02, 2014 decision of the Quotations Committee of the National Council of The Exchange wherein it approved the delisting of 21 quoted entities from the Daily Official List pursuant to the provisions of The Exchange Listing Rules.
It can therefore be implied that investors in these stocks ‘have’ lost their invested capital unlike in voluntary delisting.
A review of the list and supporting data reveals the following:
Dividend and share performance history is available at www.theanalystng.com