By Dipo Olowookere
Shares of Oando Plc have risen by 10 percent after the Securities and Exchange Commission (SEC) directed the Nigerian Stock Exchange (NSE) to lift the technical suspension earlier placed on the energy firm since October 23, 2017.
Since the embargo, shares of the Adewale Tinubu-led company had remained at N5.99k, but with the suspension finally lifted on Thursday, Oando now trades at N6.60k per share.
On Tuesday, the NSE had lifted the embargo, but hours later, it reversed the decision, leaving some investors confused on the truth state of things on Wednesday.
Some shareholders of the company had at a press conference earlier this week appealed to President Muhammadu Buhari to intervene in the matter.
They claimed the technical suspension was sending a wrong signal to investors. Hours after their plea, the suspension was removed and the shares of Oando now have price movements.
Business Post reports that as at 2pm on Thursday, the stock was trading at N6.60k per share, appreciating by 10 percent already.
Confirming this development, Oando said in a statement today that the NSE has lifted the technical suspension placed on its shares following a directive issued by SEC, the apex regulator in the nation’s capital market.
“Further to this, the impediment to price movement in the shares of the company was removed when the market opened for trading today, April 12, 2018.
“The lifting of the technical suspension means that Oando shares will now experience price movements in response to competitive forces of demand and supply in line with the NSE’s trading rules.
“The lifting of the technical suspension by the regulator is good news for the company and all its shareholders and will restore and boost investor confidence in the market.
“In addition, the forensic audit into the affairs of the company is currently underway by Deloitte Nigeria (Deloitte), the SEC appointed forensic team lead.
“To date the company has been fully cooperative with both the SEC and Deloitte.
“In the spirit of goodwill, transparency and full disclosure, we will continue to cooperate with the SEC and its nominated parties in the discharge of their duties as the capital market’s regulator during this exercise.
“We are hopeful that the forensic audit will have limited impact on the day-to-day operations of the business and we look forward to a swift and smooth conclusion by the SEC,” Oando said in the statement.
