Buying and selling the shares of First Aluminium Nigeria Plc will no longer be possible through the Nigerian Stock Exchange (NSE).
This is because the entire issued share capital has been delisted following a voluntary request made by the company.
In April 2019, the board of the aluminium firm had explained that the firm was exiting the stock exchange due to inactivity on the shares of the company as well as the inability of the current listing to help in realizing the corporate objectives of the company.
The firm said it had intended to raise fresh capital to boost its operations, but its current illiquidity rendered the corporate objective unattainable.
According to the company, over the last 12 months, there had been a significant fall in average daily trading volumes to 2,918 shares between July 2017 and June 2018 and further dip to 2,816 shares between July 2018 and December 2018.
“Neither the company nor any shareholder is benefiting from the continued listing on the NSE. Furthermore, rationalization of operational expenses to support the company’s business and to meet the needs of various stakeholders as the attendant cost required to comply with its listing requirements including filing fees, penalties or sanctions, are not commensurate with the benefits to the company,” First Aluminium had stated.
The company also lamented that over the past seven years, there have been little or no trading activity on the shares held by the minority shareholders while the share price was stuck at 50 kobo for about six years. It has since dropped further below nominal value.
“Shareholders are not benefitting from the continued listing as they are not getting exit opportunities and their investments have been locked up, thereby finding it difficult of their shareholding. Neither the company nor its shareholders have benefitted as the company’s shares continue to trade at a significant discount to the intrinsic value,” First Aluminium had added.
Godstime Iwenekhai, NSE head of listing and regulations confirmed the delisting in a circular released by the Exchange
He said, “Further to our market bulletin of May 13, 2019, notifying dealing members of the suspension of trading in the shares of First Aluminium Nigeria Plc in preparation for the voluntary delisting of the issued share capital of the company from the daily official list of the NSE, please be informed that the entire issued share capital of First Aluminium Nigeria Plc were delisted from the daily official list of the exchange on Wednesday, July 31, 2019.”