NGX Upgrades Skyway Aviation to Medium-Price Stock Level
By Dipo Olowookere
The price group of Skyway Aviation Handling Company Plc has been upgraded to the medium-price stock level from a low-price stock category by the Nigerian Exchange (NGX) Limited.
A circular issued last week by the bourse confirmed this development, which was due to the trading of the company’s shares at the N5 band for more than four months.
The exchange operates a pricing methodology framework, which allows the reclassification of stocks if the share price stays within a certain level for at least four months of the last six months.
The equity value of Skyway Aviation had been in the low-priced stock group but because it had traded above the N5 price level between January and May 2022, it was moved higher to the next category.
According to the notice from the NGX, a review of the stock price of Skyway Aviation and trade activities over the most recent six-month period “provides the basis for reclassifying the security from the low-priced stock group to the medium-priced stock group.”
“This reclassification also necessitates the attendant change in the tick size change from N0.01 kobo to N0.05 kobo – in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Trading License Holders’ Rules).
“Skyway Aviation Handling Company Plc stock price appreciated above the N5 price level on January 4, 2022, and traded above N5 up till closing of business on May 25, 2022.
“This indicates that Skyway Aviation Handling Company Plc stock price has traded above N5 in at least 4 months out of the last 6 months.
“Resultantly, Skyway Aviation Handling Company Plc has been reclassified from the low-priced stock group to the medium-priced stock group with effect from Tuesday, June 14, 2022,” the disclosure declared.
The Nigerian exchange classifies shares of firms on its platform into three stock price groups or categories; high-priced, medium-priced, and low-priced stocks, based on their market price.
In this regard, securities must have traded for at least four out of the most recent six-month period within a stock price group’s specified price band to be classified into the category.