NGX Suspends Royal Exchange, Three Others

By Dipo Olowookere

Four public companies trading their shares on the nation’s main stock exchange have been suspended by the management of the Nigerian Exchange (NGX) Limited.

The affected firms are Royal Exchange Plc, African Alliance Insurance Plc, Niger Insurance Plc and Tourist Company of Nigeria Plc.

They were stopped from trading their equities on the exchange for the time being for failing to adhere to one of the listing rules.

A notice from the exchange said the four organisations were specifically punished for refusing to submit their audited financial statements for the year ended December 31, 2020, adding that the suspension became effective Friday, July 2, 2021.

“Trading license holders and the investing public are hereby notified that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing 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,’ trading in the shares of the four companies has been suspended from the facilities of the Nigerian Exchange Limited effective Friday, July 2, 2021, having failed to file their audited financial statements for the year ended December 31, 2020.

“In accordance with the Default Filing Rules set forth above, the suspension of trading in the shares of the above-mentioned companies will only be lifted upon the submission of the relevant accounts, provided NGX Regulation Limited is satisfied that the accounts comply with all applicable rules of the exchange,” the disclosure read.

Business Post reports that before the suspension, African Alliance Insurance share price was 20 kobo, Niger Insurance was also 20 kobo, Royal Exchange was 55 kobo, while Tourist Company of Nigeria was N2.84.