AUG. 14, 2018: 35.4% LISTED COMPANIES DELISTED IN NIGERIA SO FAR.

Between 2002 and April this year, of the 263 companies quoted on the Nigerian Stock Exchange, 93 or 35.4% have been delisted so far.

According to data obtained from the Stock Exchange, the list includes 3 delisted so far this year alone, and 5 in 2017.

The highest number of delisting occurred in 2011 with 21 listed companies delisted that year followed by 2008, with 19.

The 2011 figures were that high because many banks merged, 3 insurance companies were asked out by the National Insurance Commission (NAICOM) while the exchange asked 11 to delist for not regulatory reasons. Only 3 of the 2011 delisted  left voluntarily

In 2008, however, the bulk of the delisting was regulatory and only one was voluntary perhaps reflecting the tough time the market and Nigerian finance industry went in 2008.

Of the delisted companies since 2002 to date, construction, foods and beverages, footwear and textiles and Insurance dominated.

The banks on the list were either helped to exit by the Central Bank of Nigeria or merged with other institutions thus leading to inevitable delisting or being listed under the new umbrella outfit.

The latest listing was of Notore Chemicals which had 1.612m of its shares listed at N62.50 per share by introduction. Before the listing, an offshore, company, Notore Chemicals tegistered in Mauritius held 77.07% of its issued capital.

At the same time, the shareholders of Great Nigeria Insurance at a meeting held at Lekki on July 25, this year, mandated the directors to start the process of delisting the company immediately.

The process is now on and minority shareholders who do not want to invest in a none quoted company are expected to divest by selling their holdings at the stock exchange with an added exit incentive of N0.50 per share.

This will bring the number of delisted companies since 2002 to 94 or 35.7% of all corporate equity listings since then.

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