Not less than N17.8 billion will be lost by investors as the quotations committee of the Nigerian Stock Exchange (NSE) finally delisted eight companies from its daily official list for violating listing rules.
The delisting of the eight companies was approved by the Quotations Committee of the National Council of the NSE on March 18, 2016.
The companies are IPWA Plc, G. Cappa Plc, West African Glass Industries Plc (WAGI) and Investment & Allied Insurance Plc.
Other delisted companies include Aluminium Manufacturing Company (Alumaco), Jos International Breweries Plc, Adswitch Plc and Rokanna Plc.
Also, the committee has approved the delisting process of Costain, Deap Capital Management, Evans Medical, International Energy Insurance, Lennards (Nigeria), P.S. Mandrides & Company, Premier Breweries, Navitus Energy, Nigerian Ropes Plc, MTI and Mtech.
While some of the companies are being delisted for failing to file their quarterly and annual financial reports and accounts with the NSE, others will face the same fate for failing to regularise their listing status with the exchange after being given time to do so.
IPWA, listed on the Building Materials sub-sector, contributes N257 million to the NSE’s market capitalisation while the delisting of G. Cappa, listed under Building Structure/Completion sub-sector, will also wipe N1.8 billion of investors’ investment. The delisting of West African Glass Industries will wipe N131 million from the market capitalisation, Investment & Allied Insurance will cost investors N14 billion while Jos international Breweries, another consumer goods-listed company’s delisting will deplete investors’ wealth by N809.28 million. The delisting of Alumaco will cost investors N557 million while delisting of Rokanna and Adswitch will cost investors N30 million and N203.8 million respectively.
The chief executive officer, NSE, Mr Oscar Onyema, recently expressed that the delisting exercise was not a ploy to emasculate investments of shareholders as some have argued. He said that the assertion was erroneous, insisting that the exercise is a testimony of NSE’s commitment to zero tolerance for non-compliance to its post-listing rules and requirements.
