A total of seven companies delisted and three were listed on the Nigerian Exchange Limited (NGX) in 2021 amid expectation that the stock market might close the year positive.
The stock market before the two-day public to mark the Christmas celebration in its Year-till-Date performance stood at 4.95 per cent.
However, out of the seven delisted companies, the management of the Exchange forcefully delisted four, while three voluntary delisted
Capital market analysts, to management decision to delist and failure to comply with the post-listing requirement.
Evans Medical Plc, Nigeria-German Chemicals Plc, Roads Nigeria Plc, and Unic Diversified Holdings Plc were forcefully delisted from the market for not complying with post-listing requirement of promptly filing of results.
Studio Press Nigeria Plc, Union Diagnostic and Clinical Services Plc, and 11 Plc voluntary delisted from the Exchange in 2021.
The National Co-ordinator, Independent Shareholders Association of Nigeria, Dr. Anthony Omojola said shareholders are concerned that more companies delisted from the bourse than new listings.
The business environment is not friendly to allow these companies to expand and make profit.”
Analyst at PAC Holdings, Mr. Wole Adeyeye said the poor earnings due to weak corporate governance and economy factors impacted on these companies late filing of results at the stipulated time.
“Most of these companies were reporting losses and delisting them was the best thing. We have seen situations where the company cannot meet NGX listing requirements and moved to NASD Exchange.
Adeyeye noted that: “We should be having more than three listings in a year on the NGX. The three listings is a welcome development but we can do better to attract more listings.”
– Thisday