NASD OTC Eyes Firms Delisted from Nigerian Stock Exchange

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Goddy Egene

The management of NASD Plc is making moves to get the eight companies delisted from the Nigerian Stock Exchange (NSE) last week to trade on the over-the-counter (OTC) market.

NASD Plc is the platform for the securities of all unquoted public companies in Nigeria. The platform, which commenced operations in 2013, has admitted 27 firms with efforts being made to attract more.

However, THISDAY checks revealed that NASD Plc is making moves to attract the eight companies delisted by NSE. The companies include: IPWA Plc, G. Cappa Plc, West African Glass Industries Plc, Investment & Allied Insurance Plc, Alumaco Plc, Jos International Breweries Plc, Adswitch Plc and Rokanna Plc.

The stocks were delisted for failure to comply with listing requirements. It was gathered that NASD Plc sees some of the companies a very good candidates for the platform given the experience they have already had on the NSE.

“These companies have already been exposed to the requirements of an exchange and they have been on the NSE for many years before now. However, due to one challenge or other they could no longer meet the listing requirements. But that does not mean the companies cannot recover. Having been delisted from the NSE, they can be traded on the NASD Plc so that any of their investors wanting to exit can do that. Also, other investors who still have confidence in their future can enter,” a market source told THISHDAY on Monday.

The source added that it would be in the interest of NASD Plc, the companies and investors if the companies would be able to trade on the OTC platform having exited the NSE.

“A company that was delisted from NSE, Cappa & D’Alberto now trades on the NASD platform, a development that is good for the market and has created some liquidity for investors. I am sure with the some of the eight companies could follow the same” the source added.
NASD Plc has been eying over 70 public companies that already have their securities registered with the Securities and Exchange Commission (SEC).

The Managing Director/CEO of NASD Plc, Mr. Bola Ajomale, had told THISDAY that efforts were being made to ensure that such public companies that are yet to have their shares traded on the OTC platform are made to do so.

According to him, various strategies are being adopted to achieve the listing of these shares so that the companies and their shareholders would enjoy the benefits of patronising NASD Plc.
Ajomale had explained that since the platform began operations it had been providing benefits to various stakeholders in the OTC market unlike before.

“Our coming has boosted investor confidence by providing transparency in trading of unlisted securities, protecting investors from unregistered middlemen, providing information on liquidity around unlisted securities and improving investor/shareholder relations,” he said.