By Dipo Olowookere
The suspension placed on the trading in the shares of African Alliance Insurance Plc and Royal Exchange Plc by the Nigerian Exchange (NGX) Limited has been lifted.
The two organisations were prevented from trading their equities on the exchange over their failure to file their financial statements as they earlier agreed when they requested to trade their stocks publicly.
However, when they reneged, the exchange took the decision to suspend them, forcing their boards to do the needful, which has subsequently led to the removal of the embargo.
African Alliance and Royal Exchange were among the four companies suspended by the NGX on Friday, July 2, 2021.
A message to the investing public on Monday, October 4, 2021, from the stock exchange said the embargo was removed today.
“We refer to our Market Bulletin dated July 2, 2021, with reference number: NGXREG/LRD/MB23/21/07/02, wherein we notified trading licence holders and the investing public of the suspension of four listed companies for non-compliance with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the exchange,” a part of the notice said.
“African Alliance Insurance Plc and Royal Exchange Plc, two of the four listed companies that were suspended on July 2, 2021, have now filed their audited financial statements for the year ended December 31, 2020, and unaudited financial statements for the quarter ended March 31, 2021.
“In view of the companies’ submission of these financial statements, and pursuant to Rule 3.3 of the default filing rules, trading licence holders and the investing public are hereby notified that the suspension placed on trading on the shares of African Alliance Insurance and Royal Exchange has been lifted.”
Business Post reports that shares of African Alliance closed flat at 20 kobo each on the floor of the exchange on Monday, while the stocks of Royal Exchange remained unchanged at 55 kobo per unit.
Adedapo Adesanya