22 companies expelled by NSE over non-performance in 2 years

Posted by Rachel Madison on 2018-06-13 12:17:00 | Views: 11 |

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22 companies expelled by NSE over non-performance in 2 years

- Twenty two companies were removed from the official list of stock by the Nigerian Stock Exchange between 2016 and 2017

- Some of the companies that were removed included Jos International Breweries, Adswitch, Rokanna, Vono Products and Lennards Nigeria

- Others were Beco Petroleum, M Tech Communication, MTI, UAC and Ashaka Cement

The Nigerian Stock Exchange (NSE) expelled not less than 22 companies between 2016 and 2017 over non-performance and failure to meet the required post-quotation standards.

Data obtained by the News Agency of Nigeria (NAN) from the exchange showed that 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.

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

NAIJ.com notes that delisting is the process of removing a company from the official list of the stock either voluntarily or by compulsion.

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.

Chief executive officer of NSE, Oscar Onyema, said recently that companies in their life cycle would be listed, while others would be delisted over time.

He said: “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."

Speaking on the issue, Professor Sheriffdeen Tella of the Economics department, Olabisi Onabanjo University Ago-Iwoye, Ogun, said that the development was due to the economic situation.

Tella said the Nigerian economy had not performed creditably in the last three years. “The economy entered recession in 2015 and started coming out sluggishly towards the end of 2017.

He said: “A depressed economy cannot encourage investments, either direct investment or portfolio investment, which has to do with the stock market activities.

“So, potential new entrants into the stock market were not encouraged to get listed on the market by the state of the economy."

He explained that those that were delisted were companies that either withdrew voluntarily or were removed by market regulators for non-performing, noting that they were all products of recession.

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Meanwhile, NAIJ.com previously reported that the foreign exchange restriction placed on 41 items by the Central Bank of Nigeria (CBN), adversely affected operations in the business sector.

According to manufacturers, since the forex restriction order was placed, about 272 firms had been forced out of business, 50 of these were manufacturing companies.

Yes from Buhari: Tobacco and Alcoholic drinks to cost more (New excise duty rates) | on NAIJ.com TV

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Source: Naija.ng

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