NSE delists Daar, Starcomms, JIB, 17 others

The Nigerian Stock Exchange (NSE) has decided to delist 20 companies for non-compliance with listing requirements. While 15 of the companies are being delisted for failure to file their quarterly and annual financial statements, five others  are being delisted for failure to regularise their listing status after being given time to do so. Those being delisted for failure to file  their financial statements include: Investment and Allied Insurance Plc; Goldlink Insurance Plc; Pinnacle Point Group; Adswitch Plc; Afroil Plc, Rokanna Industries Plc; IPWA Plc; West Africa Glass Industry Plc; Nigeria Wire and Cable Plc; Starcomms Plc and Daar Communications Plc.

Others are: Mtech Plc; Big Treat Plc; G.Cappa Plc and UTC Plc.
On the other hand, the companies being delisted for failure to regularise their listing status are: Jos International Breweries (JIB) Plc; Golden Guinea Plc; Stockvis Plc; Capital Oil Plc and Nigeria Sewing Machines Plc.
The NSE  explained that  its quotation committee met on June 2, 2014 and approved the delisting of some entities pursuant to  listing rules of  the exchange specifically clause 15 of the general undertaking.
“The regulatory action is necessary in order to protect the investing public  from trading in the securities of entities  without current information regarding their financial status,” the exchange said.

Some market operators said they are not surprised that JIB is among affected companies given the fact that company witnessed an unprecedented rally last year. THISDAY had last September reported the steep rise in the shares of JIB despite the fact that company had remained comatose for many years.
It was pointed out in the report that despite the fact that JIB had not paid dividend in recent times and had not submitted its financial reports for many years, its shares have soared by 415 per cent  in nine months, rising from  N1.46 to N7.52 per share.
Ironically, the NSE had then listed JIB among the companies that had failed the exchange’s compliance test as indicated in the x-compliance.
A shareholder activist and Chairman, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, had said the rally in the share price was  worrisome and fraudulent.
“How can regulators allow the shares of a company that has not held annual general meeting, never paid dividend for many years, and never disclosed any positive information in recent times, to rise the way and manner JIB is rising? This is fraudulent and must be checked,” Okezie said.
But the stock was allowed to rise for  26 consecutive days  to hit N9.09 per share, showing a  jump of 552 per cent. However, profit-taking by some investors reduced the gain to 200 per cent last year.