NSE to delist six more firms from bourse

About six companies are in the process of being delisted from the Nigerian Stock Exchange following some infractions by the affected company.

The affected companies are: Evans Medical Plc; Nigeria-German Chemicals Plc; Amino International Plc; Roads Nigeria Plc; Tourist Company of Nigeria Plc and DEAP Capital Management & Trust Plc.

Note that so far in 2019, a total of seven companies have been delisted from the NSE. The companies are Diamond Bank Plc, Great Nigeria Insurance Plc, Newrest ASL Nigeria Plc, First Aluminium Nigeria, Fortis Microfinance Bank Plc, Skye Bank Plc, and Dangote Flour Mills Plc.

According to findings, out of the six companies that are in the process of delisting (DIP) from the NSE, four could be forcefully delisted due to their persistent non-compliance to NSE’s listing rules. The remaining two, on the other hand, could be voluntarily delisting.

Over the years, Evans Medical Plc, has been plagued by many challenges ranging from increasing competition and corporate governance lapses. The latest NSE X-Compliance report indicated that the company has not submitted any quarterly financial statements from 2016 to 2019. At this rate, the NSE may have no choice but to forcefully delist the company.

Nigeria-German Chemicals Plc has also not been obeying the listing rules of the NSE. The latest NSE X-Compliance report also noted the company has not filed any financial statement since Q3 2014 till date. It will not come as a surprise if the company is delisted from the Nigerian bourse any moment from now due to regulatory reasons.

Amino International Plc is also in the process of delisting primarily because it abused NSE rules by not disclosing its quarterly financial statements since 2015 till date. The company, which engages in manufacturing of different kinds of personal and industrial products, was incorporated in 1981 and listed on the NSE in 1990.

Roads Nigeria Plc is a civil engineering firm that is in the business of construction of roads, bridges, dams, airfields, and real estate. The company was incorporated in 1974 and is headquartered in the Northern Nigerian city of Sokoto.

Unfortunately, the company has not released its quarterly financial statements since 2014. This is a major violation of the NSE listing rules which could result in the company being delisted soon.

The delisting of the Tourist Company of Nigeria Plc from the Nigerian Stock Exchange may be a voluntary move by the company’s owners. The company has recently been plagued by ownership tussles, with some shareholders calling for it to be liquidated. The hospitality company was incorporated in 1964.

DEAP Capital Management Trust Plc was incorporated in 2002 and listed on the NSE in 2007. It is unclear whether its delisting is voluntary or regulatory. However, it appears the company is struggling financially as its latest financial disclosure shows.