Afribank, A.G Leventis, Constain, and other companies delisted from The Nigerian Exchange

Recently The Nigerian Stock Exchange completed its demutualization exercise and a new holding company, The Nigerian Exchange Group (NGX Group) Plc emerged.

The Holdco emerged with three operating subsidiaries duly registered at the CAC, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company.

The Nigerian Exchange currently have more than 160 listed companies on its books, many had been listed and subsequently delisted for several reasons.

According to Investopedia,

Delisting is the removal of a listed security from a stock exchange. The delisting of a security can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to become private.

The Nigerian Exchange defined the term as;

The term “delisting” of securities means removal of listed securities from The Exchange.
Consequently, the securities of an affected Issuer will no longer be traded on The Exchange and the Issuer’s name will be removed from the Daily Official List of The Exchange. The decision to delist a security is taken only after thorough and careful analysis. It is not a decision arrived at without full consideration of the interests of all stakeholders involved.

The shares of a company (issuer) can be delisted voluntarily, wherein the Issuer that intends to de-list its shares from the Daily Official List of The Exchange shall convene a meeting of its Board of Directors, at which the Board shall consider a recommendation to the shareholders of the Issuer that the Issuer should be voluntarily de-listed, and pass a resolution in that regard.

The shares of a company can also be delisted by a means known as regulatory delisting, which is literally a delisting at the instance of The Exchange. It is the ultimate sanction that can be imposed on an Issuer for persistent non-compliance with the Listings Rules of The Exchange, or for failing to meet the financial requirements of listing on The Exchange.

Have you been wondering what happened to the shares of that company that you no longer hear about on the Nigerian Exchange? Below is the list of all the companies that has been delisted from the Nigerian Exchange.

Nnamdi Maduakor

Nnamdi Maduakor is a Writer, Investor and Entrepreneur