SHAREHOLDERS CONCERNED OVER VOLUNTARY DELISTING OF 18 FIRMS, TOTAL MARKET LOSS OF N476 BILLION IN NINE YEARS
Detailed Breakdown:
Key Concern: Shareholders have voiced their concerns over the voluntary delisting of 18 firms from the Nigerian Exchange (NGX) over the past nine years, with a cumulative market capitalization of N476 billion.
Context: Out of the 49 companies that exited the market between 2015 and 2024, 29 were delisted by regulators due to non-compliance or mergers, while 18 voluntarily delisted, citing a challenging operating environment as their primary reason.
Affected Firms: Some of the notable companies include Union Diagnostic and Clinical Services (N995 million), Newrest Plc (N4.3 billion), and Dangote Flourmills (N111 billion), among others. These delistings span across different sectors of the economy, impacting shareholders.
Shareholders' Call for Action: Stakeholders have urged the government to address key economic issues such as foreign exchange (FX) management, excessive taxation, and poor infrastructure to help businesses survive and remain listed.
Business Challenges: Companies are battling rising inflation, FX scarcity, high energy costs, and operational difficulties, particularly within the fast-moving consumer goods (FMCG) sector. This situation has led to lower profitability and underutilization of capacity.
Impact on Shareholders: Voluntary delisting has reduced liquidity, limited trading options for shareholders, and increased the risk of losses in investments, while also diminishing transparency and accountability for companies that choose to leave the exchange.
Call for Support: Shareholder associations have recommended stimulus packages and sector-specific incentives to assist struggling businesses, while also stressing the need for a better regulatory and operational framework to prevent further exits from the stock market.
Detailed Breakdown:
Key Concern: Shareholders have voiced their concerns over the voluntary delisting of 18 firms from the Nigerian Exchange (NGX) over the past nine years, with a cumulative market capitalization of N476 billion.
Context: Out of the 49 companies that exited the market between 2015 and 2024, 29 were delisted by regulators due to non-compliance or mergers, while 18 voluntarily delisted, citing a challenging operating environment as their primary reason.
Affected Firms: Some of the notable companies include Union Diagnostic and Clinical Services (N995 million), Newrest Plc (N4.3 billion), and Dangote Flourmills (N111 billion), among others. These delistings span across different sectors of the economy, impacting shareholders.
Shareholders' Call for Action: Stakeholders have urged the government to address key economic issues such as foreign exchange (FX) management, excessive taxation, and poor infrastructure to help businesses survive and remain listed.
Business Challenges: Companies are battling rising inflation, FX scarcity, high energy costs, and operational difficulties, particularly within the fast-moving consumer goods (FMCG) sector. This situation has led to lower profitability and underutilization of capacity.
Impact on Shareholders: Voluntary delisting has reduced liquidity, limited trading options for shareholders, and increased the risk of losses in investments, while also diminishing transparency and accountability for companies that choose to leave the exchange.
Call for Support: Shareholder associations have recommended stimulus packages and sector-specific incentives to assist struggling businesses, while also stressing the need for a better regulatory and operational framework to prevent further exits from the stock market.