NGX Delists Tourist Company of Nigeria, Union Homes Savings & Loans Over Non-Compliance

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The Nigerian Exchange Limited (NGX) has delisted two companies Tourist Company of Nigeria Plc and Union Homes Savings & Loans Plc whose combined market capitalization stood at N8.6 billion. As of January 31, 2025, Tourist Company of Nigeria was trading at N2.50 per share with a market capitalization of N5.62 billion, while Union Homes Savings & Loans was delisted at N3.02 per share with a market value of N2.95 billion.

The primary reason for their delisting was non-compliance with NGX regulations, particularly the failure to submit audited financial statements. Tourist Company of Nigeria had not released its 2020 audited results, while Union Homes Savings & Loans had gone six years without submitting financial reports. These violations led the Exchange to declare their securities unsuitable for continued listing.

According to NGX’s weekly report, both companies were removed from the trading platform due to operating below listing standards. The Exchange cited Clause 14 of its listing regulations, which grants it the authority to delist companies that fail to meet reporting and governance requirements. NGX emphasized that delisting decisions are made in the public interest to maintain market integrity.

Tourist Company of Nigeria long faced compliance issues. The company has been under scrutiny since 2015 due to free float deficiencies, governance concerns, and unresolved issues related to Ikeja Hotel Plc. Despite briefly holding off on delisting due to governance disputes, NGX finally resumed the process in 2024, resulting in the current decision.

Before its removal, Tourist Company of Nigeria reported a significant financial loss, posting a N44.3 billion deficit for 2024, up from N33.69 billion in 2023. The last financial statement released was for the nine-month period ending September 30, 2024. Despite announcing unaudited Q4 results a day before delisting, the company was unable to meet NGX’s listing requirements, sealing its exit from the Excha

Source: THIS DAY

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