Shares of These Firms Have Remained Suspended Since 2017

By Modupe Gbadeyanka

A total of 15 companies still have their shares not being traded by investors on the floor of the Nigerian Stock Exchange (NSE) as at the close of business on Friday, October 11, 2019, an investigation by Business Post has revealed.

Most of the affected firms had trading in their securities stopped by the NSE as far back as 2017 for failure to submit their financial statements as required by one of the listing rules.

One of the rules is the Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange (Issuers’ Rules), which provides 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.”

From the analysis done by Business Post, trading in the shares of six companies was paused since 2017, five since 2018 and four in 2019. The four were among the 11 firms suspended by the NSE in July 2019 for failure to release their earnings.

The companies still not having their shares traded by investors on the NSE are Union Homes Savings & Loans suspended on July 5, 2017; Omatek Ventures suspended on July 5, 2017; Evans Medical suspended on July 5, 2017; Aso Savings & Loans suspended July 5, 2017; Roads Nigeria suspended on October 4, 2017; and Nigerian German Chemical suspended on October 4, 2017.

Others are STACO Insurance suspended on july 5, 2018; DN Tyre & Rubber suspended on October 8, 2018; Unic Diversified Holdings suspended on October 8, 2018; International Energy Insurance suspended on October 8, 2018; and Multi-Trex Integrated Foods suspended on November 1, 2018.

The remaining companies are Standard Alliance Insurance suspended on July 2, 2019; Resort Savings and Loans suspended on July 2, 2019; Goodlink Insurance suspended on July 2, 2019; and FTN Cocoa Processors suspended on July 2, 2019.