Stock Exchange upgrades BOC Gases to medium-priced stock
The Nigerian Exchange (NGX) Limited has upgraded BOC Gases Plc from low-priced stock to medium-priced stock following a recent appreciation in the share price of the industrial gas company.
In a circular, the Exchange stated that the reclassification, which took effect from June 16, 2021, was after a review of the share price of BOC Gases over the most recent six months.
According to the NGX, the review of BOC Gases’price trade activity over the most recent six month period provided the basis for reclassifying the security from the low priced stock group to the medium-priced stock group. The reclassification also necessitated the attendant change in the tick size change from one kobo to five kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the Exchange, 2015.
“BOC Gases Plc stock price appreciated above the N5 price level on 16th November 2020 and traded above N5 up till closing of business on 17th March 2021. This indicates that BOC Gases Plc stock price has traded above N5 in at least four months out of the last six months,” NGX stated.
The NGX classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price. A company 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.
The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months or new security listings that are priced at N100 or above at the time of listing on the Exchange.
The medium-priced stocks consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.
The low-priced stocks, where the majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above, but below N5 per share at the time of listing on the Exchange.
11, Capital Bancorp begin trading on NASD OTC Securities Exchange
11 Plc, formerly known as Mobil Oil Nigeria Plc, and Capital Bancorp Plc at the weekend started trading on the NASD OTC Securities Exchange, opening up a new window for secondary market transactions.
The NASD OTC Securities Exchange is the government-approved over-the-counter (OTC) platform for trading in unlisted public companies.
NASD assured of an orderly and transparent market for shares to be traded, noting that once there is transparency, investors have some comfort in the type of transactions taking place.
“NASD can also, by its structure and rules open securities to trade between 24 and 48 hours, with its only requirement being that the securities being introduced are registered at Securities and Exchange Commission (SEC) and complies with the capital market regulations,” NASD stated.
NASD pointed out that OTC platform has been created for securities that are not listed on any other securities exchange providing a secure regulated platform for Investors to trade on them.
11 had delisted its shares from the Nigerian Exchange (NGX) Limited, ending its 42-year listing on a regular stock exchange. The high-profile delisting shaved off more than N82 billion from the market capitalisation at the NGX.
11 had opted for voluntary delisting after its new owners pushed through shareholders delisting programme as part of the restructuring of the downstream oil company.
The NGX stated at the weekend that it delisted the entire share capital of 11 from its Daily Official List in line with the approval of the shareholders of 11 to delist the petroleum company.
NIPCO Investments Limited, a subsidiary of NIPCO Plc, had in March 2017 taken over the 60 per cent majority equity stake of ExxonMobil Oil Corporation in Mobil Oil Nigeria Plc in a $301 million acquisition deal. It subsequently changed the name of the company to 11 Plc, pronounced as a double one. The name change was a sequel to the resolution passed by the company’s shareholders at its annual general meeting held on May 24, 2017.
ExxonMobil and Nipco had, in October 2016, executed a sale and purchase agreement (SPA) to sell the former’s majority equity stake of 60 per cent in Mobil Oil Nigeria (MON) to Nipco, an indigenous oil and gas company.
Explaining the rationales for the delisting to shareholders, 11 stated that the delisting of its shares from the NGX would enable the company to implement strategic plans that will improve the overall performance of the downstream oil company.
The company stated that the delisting would enable it to explore strategic opportunities, alliances and collaborations that can bolster earnings and synergised benefits with little or no regulatory obligations.
According to the company, delisting will lead to greater focus and impact on the performance of its performance while it will not have any material changes on its operations, staff and board compositions.
“11 Plc will be able to focus on revenue generation, consider strategic opportunities, alliances and collaborations; and tremendously shift from regulatory, administrative, and financial reporting regulations that companies listed on the Nigerian Stock Exchange must adhere to,” 11 stated.
The company stated that while its shares will no longer be available for trading on the NSE, now NGX, upon delisting, it would continue to operate as an unlisted public company. This raises the possibility of its shares being listed and traded on the NASD OTC Securities Exchange –the over-the-counter platform for trading of unlisted public companies.
The company had noted that the delisting would not have any impact on the existing employment contracts of its staff as well as the composition of the board of directors.
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