By Dipo Olowookere
The entire issued share capital of First Aluminium Nigeria Plc has been removed from the trading platform of the Nigerian Stock Exchange (NSE).
This followed the request made by the board of the company that all the shares should be delisted from the daily official list of the exchange.
In April 2019, the board of the aluminium firm had explained that the firm was exiting the stock exchange due to inactivity on the shares of the company as well as the inability of the current listing to help in realizing the corporate objectives of the company are the main reason behind the delisting.
The firm had intended to raise fresh capital to boost its operations, but its current illiquidity has rendered this primary corporate objective unattainable.
According to the company, over the last 12 months, there had been a significant fall in average daily trading volumes to 2,918 shares between July 2017 and June 2018 and further dip to 2,816 shares between July 2018 and December 2018.
“Neither the company nor any shareholder is benefiting from the continued listing on the NSE. Furthermore, rationalization of operational expenses to support the company’s business and to meet the needs of various stakeholders as the attendant cost required to comply with its listing requirements including filing fees, penalties or sanctions, are not commensurate with the benefits to the company,” First Aluminium had stated.
According to the company, over the past seven years, there have been little or no trading activity on the shares held by the minority shareholders while the share price was stuck at 50 kobo for about six years. It has since dropped further below nominal value.
“Shareholders are not benefitting from the continued listing as they are not getting exit opportunities and their investments have been locked up, thereby finding it difficult of their shareholding. Neither the company nor its shareholders have benefitted as the company’s shares continue to trade at a significant discount to the intrinsic value,” First Aluminium had added.
Yesterday, the Head of Listings Regulation Department at the NSE, Mr Godstime Iwenekhai, confirmed in a circular the voluntary delisting of the entire issued share capital of First Aluminium Nigeria Plc from the daily official list of the exchange.
He said, “Further to our market bulletin of May 13, 2019, notifying dealing members of the suspension of trading in the shares of First Aluminium Nigeria Plc in preparation for the voluntary delisting of the issued share capital of the company from the daily official list of the NSE, please be informed that the entire issued share capital of First Aluminium Nigeria Plc were delisted from the daily official list of the xxchange on Wednesday, July 31, 2019.”
Adedapo Adesanya