Trading in Oando Shares Resumes as NGX Removes Embargo

By Dipo Olowookere

An embargo placed on Oando Plc by the Nigerian Exchange (NGX) Limited almost two weeks ago has been lifted, Business Post reports.

The stock market regulator had prohibited the buying and selling of the energy company’s securities in Nigeria over the failure of the board to release the financial statements for the 2023 accounting year.

The non-filing of the results was in violation of one of the listing rules, specifically Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing (Default Filing Rules).

The sector of the rules empowered the exchange to wield its hammer on any publicly-quoted organisation that fails to submit its financial statements at the appropriate time.

The part of the guidelines states that, “If an Issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: a) send to the issuer a second filing deficiency notification within two business days after the end of the cure period, b) suspend trading in the issuer’s securities, and c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.”

In line with this, the NGX announced the suspension of trading in the shares of the indigenous energy firm on October 24, 2024, via a notice with the reference number: NGXREG/IRD/ MB79/24/10/24.

Last Friday, the NGX published the audited financial statements of Oando and yesterday, it announced the lifting of the suspension on the company.

The notice, signed by the Head of Issuer Regulation Department of the NGX, Mr Godstime Iwenekhai, said, “Oando Plc has now filed its Audited Financial Statements for the year ended December 31, 2023, and Unaudited Financial Statements for the periods ended March 31, 2024, and June 30, 2024.

“In view of the company’s submission of its financial statements, and pursuant to Rule 3.3 of the Default Filing Rules, which states that; the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange.

“The exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted, trading license holders and the investing public are hereby notified that the suspension placed on trading on the shares of Oando Plc was lifted today, Monday, November 4, 2024.”

Business Post reports at the market that on Monday, Oando stocks crashed by 9.98 per cent to settle at N80.70 per unit versus the previous trading day’s N89.65 per unit.