By Dipo Olowookere
Trading in the shares of Aradel Holdings Plc on the NASD Over-the-Counter (OTC) Securities Exchange has been suspended.
The announcement of the suspension was announced by the trading platform and it took effect at the close of business on Thursday, September 19, 2024.
It was disclosed that shareholders and investors would not be able to buy or sell the securities of the energy company until the embargo is lifted, ostensibly on Monday, September 30, 2024.
The reason for the prohibition is for the stock split of Aradel Holdings ahead of its eventual exit from the NASD and listing on the Nigerian Exchange (NGX) Limited.
Recall that at its Annual General Meeting (AGM) held on Wednesday, June 5, 2024, the company’s shareholders approved the redenomination of the nominal value of the company’s shares from N10 each to 50 Kobo each.
This will effectively change the current 217,242,218 ordinary shares of N10 each to 4,344,844,360 ordinary shares of 50 Kobo each.
Aradel Holdings, which closed yesterday at over N9,399.00 per unit, has a nominal value of N10 but to list on the NGX, its nominal value must be 50 Kobo each, the reason for the stock split.
After this exercise, the value of Aradel Holdings will be about N469.95 per unit at 50 Kobo each instead of the current N9,399.00 per unit at N10 each.
The potential NGX value of Aradel Holdings is derived by dividing the current stock price on NASD by 20 (N10/50 Kobo).
In a notice to the investing public, the NASD announced that, “Pursuant to the company’s intention to effect a redenomination and stock split on the ordinary shares of Aradel Holdings PLC, we wish to inform you that shares of Aradel Holdings PLC shares will be suspended from trading at the close of business Thursday, September 19, 2024.
“During this suspension period, the shares would not be available for trading until the suspension will be lifted.”
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