A total of 36 companies have delisted from the Nigerian stock market between May 2016 and May 2021, even as five more are currently undergoing delisting process.
The latest data collated from Nigerian Exchange Limited showed that 23 were forced to delist, nine delisted voluntarily and four exited the Exchange as a result of mergers.
A compulsory or regulatory delisting occurs when a company is forced to delist itself from an exchange because it fails to meet the listing requirements mandated by the exchange. Voluntary delisting occurs when a company decides to remove all its shares from the exchange and make it unavailable for trading.In what is the latest delisting from the Nigerian stock market, 11 Plc, formerly Mobil Oil Nigeria Plc, voluntarily exited the NGX following a resolution passed at the Annual General Meeting last year in favour of the proposal to delist its 360,595,262 ordinary shares listed on the bourse.
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“The purpose of delisting is to enable the company explore strategic opportunities, alliances and collaborations that can bolster earnings and/or provide synergised benefits with little or no regulatory obligations,” the company said in February this year. The Exchange recorded three delistings last year, namely Continental Reinsurance Plc (voluntary): Anino International Plc (regulatory) and Cement Company of Northern Nigeria Plc (after merging with BUA Cement Plc).
In 2019, Dangote Flour Mills Plc (voluntary), Diamond Bank Plc (merged with Access Bank Plc), First Aluminium Nigeria Plc (voluntary), Fortis Microfinance Bank Plc (regulatory), Great Nigeria Insurance Plc (voluntary), Newrest ASL Nigeria Plc (voluntary) and Skye Bank Plc (regulatory) were delisted from the exchange.
Four companies were delisted in 2018, namely Seven-Up Bottling Company Plc (voluntary), Paints and Coatings Manufacturers Nigeria Plc (voluntary), African Paints (Nigeria) (regulatory) and Afrik Pharmaceuticals Plc (regulatory).The companies that left the stock market in 2017 were Ashaka Cement Plc (merged with Lafarge Africa Plc), Avon Crown Caps and Containers Plc (voluntary), Beco Petroleum Products Plc (regulatory), Mtech Communications Plc (regulatory), MTI Plc (regulatory), and UTC Plc (regulatory).
In 2016, 14 companies were forced to delist, namely ADSwitch Plc, Alumaco Plc, Constain (W.A) Plc, G. Cappa Plc, Investment & Allied Insurance Plc, IPWA Plc, Jos International Breweries Plc, Lennards (Nigeria) Plc, Navitus Energy Plc, Nigerian Ropes Plc, P.S Mandrides & Company Plc, Premier Breweries Plc, Rokanna Plc and West African Glass Industries Plc.
Vono Products Nigeria Plc also left the stock market that year following the merger with Vitafoam Nigeria Plc.The NGX said last Friday that five companies “are undergoing the Delisting Process (regulatory/voluntary)”, adding that it had approved for NGX Regulation Limited to proceed with the process.
The companies are Evans Medical Plc, The Tourist Company of Nigeria Plc, Nigerian German Chemicals Plc, Roads Nigeria Plc and Unic Diversified Holdings Plc.
The Director-General, Securities and Exchange Commission, Mr Lamido Yuguda, said the commission had been working collaboratively with the Exchange, adding that it would continue to support the NSE to grow the market capitalisation and reduce the incidence of delisting.