Investors lose N17.8bn, as NSE delists erring companies

The Nigerian Stock Exchange (NSE) has delisted eight companies from its daily official list for violating the listing rules. This action of the NSE would lead to the loss of over N17.8 billion by investors.

The delisting of the eight companies was approved by the Quotations Committee of the National Council of the NSE.

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.

 The committee has also 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 out N1.8 billion of investors’ investments.

The delisting of West African Glass Industries will wipe off 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, explained that the delisting exercise was not a ploy to emasculate investments of shareholders as some have argued.

He said 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.

Onyema had said that sustainable investor’s protection framework would remain a key pillar in its transformation agenda, arguing that there is need to strengthen the Exchange’s regulatory framework to enhance investors’ confidence in the nation’s bourse.

He noted that the focus of the transformation programme earlier at the NSE was to strengthen the regulatory framework to ensure a safe investment destination for both local and foreign investors and establish a favourable business environment for companies to thrive.

“We have worked tirelessly to revise key rules for dealing members and issuers, and developed several new rules to create the much needed order, equitable treatment, efficiency and protection for all participants in our market. Its compliance measures were supported by tight enforcement procedures, which include inspections, market surveillance and a vigorous penalty system,” he said.