Indications have emerged that investors in eight companies delisted last week by the Nigerian Stock Exchange, NSE, face a loss of N18 billion as the delisting closed the regular window to unlock the values of their shareholdings.
In a massive shakeup that swept through many sectors, the NSE delisted eight companies including IPWA Plc, G. Cappa Plc, West African Glass Industries Plc (WAGI), Investment & Allied Insurance Plc, ALUMACO Plc, Jos International Breweries Plc, Adswitch Plc and Rokanna Plc.
The companies, valued at N17.8 billion, were delisted under the compulsory delisting mechanism of the Exchange. While the delisted companies could seek direct and indirect trading of their shares on the over-the-counter (OTC) market, NASD, the nascent OTC market lacks the comparative liquidity and regularity of the NSE.
At the point of delisting IPWA Plc was valued at N257.07 million; G. Cappa Plc, N1.81 billion; West African Glass Industries Plc (WAGI), N131.43 million; Investment & Allied Insurance Plc, N14 billion; ALUMACO Plc, N557.20 million; Jos International Breweries Plc, N809.28 million; Adswitch Plc, N203.76 million while Rokanna Plc was valued at N30 million, the Nation gathered.
Also, it was learnt that the national council of the NSE has approved the delisting of 17 companies.
A total of 18 companies have been slated for delisting including 17 companies that have been earmarked for compulsory delisting and a company that had opted for voluntary delisting over its inability to comply with listing requirements.
