Over-the-counter Market to Woo Eight Firms Delisted from Nigerian Stock Exchange

There are indications that the management of NASD Plc is making moves to get the eight companies delisted from the Nigerian Stock Exchange, NSE, last week to trade on the over-the-counter, OTC, market.

NASD Plc is the platform for the securities of all unquoted public companies in Nigeria. The platform, which kicked off operations in 2013, has admitted 27 firms with efforts being made to attract more.

Checks by Thisday have revealed that NASD Plc is making moves to attract the eight companies delisted by NSE.

The companies include: IPWA Plc, G. Cappa Plc, West African Glass Industries Plc, Investment & Allied Insurance Plc, Alumaco Plc, Jos International Breweries Plc, Adswitch Plc and Rokanna Plc.

The stocks were delisted for failure to comply with listing requirements. It was gathered that NASD Plc sees some of the companies a very good candidates for the platform given the experience they have already had on the NSE.

A source said:“These companies have already been exposed to the requirements of an exchange and they have been on the NSE for many years before now. However, due to one challenge or other they could no longer meet the listing requirements. But that does not mean the companies cannot recover. Having been delisted from the NSE, they can be traded on the NASD Plc so that any of their investors wanting to exit can do that. Also, other investors who still have confidence in their future can enter.”

The source added that it would be in the interest of NASD Plc, the companies and investors if the companies would be able to trade on the OTC platform having exited the NSE.