By Goddy Egene
The shares of Oando Plc gained a maximum of 10 per cent at the stock market yesterday to close at N3.18 per share as investors reacted positively to the recent announcement of the nullification of the Securities and Exchange Commission’s (SEC) suspension of Oando’s annual general meeting (AGM), in a ruling presided over by Justice O A Musa, at the High Court of the Federal Capital Territory (FCT).
Market operators said the new of the court ruling buoyed investors’ demand for the stock, leading to the price appreciation of Oando Plc to top the gainer’s chart.
In 2019, after SEC dismissed Oando’s board over allegations of poor corporate governance and management infractions, the company’s share price dropped by 20 per cent from N4.65 per share on Friday 31 May 2019, the day of the announcement to N3.80 per share on Monday 3 June 2019.
Nearly two years on and as a result of the suspension of the company’s AGM there has been no insight into the company’s corporate initiatives and financials leaving little room for growth in share price.
According to a shareholder of the company, for four years, Oando and SEC have been in a tussle and the shareholders had been the ones on the receiving end.
“We bought these shares as investments and it’s painful not being able to reap any benefits from this investment especially for an issue that can be resolved in a boardroom. We have pleaded with SEC to allow the management team to focus on running the business rather than fighting in court but there has been no movement until the court ruling yesterday. For two years we have had no oversight of our investment or what the company is doing, we value the role of the regulator and want them to do their jobs properly but at the same time, we are hopeful that SEC will see this as an opening for a resolution that will benefit all starting with us shareholders whose interests they are to protect,” he said.
Meanwhile, the court ruling, deemed a big win for Oando shareholders, was filed by Patrick Ajudua, an Oando shareholder. Another Oando shareholder and Coordinator, Sage Shareholders and Inc, Olowola Kehinde, said: “This news is evidence that if given the opportunity, our shares could be doing considerably better on the capital market. Overnight, this positive ruling by the court has seen our share price go up by 10 per cent, imagine how much more it could have appreciated if given a favourable operating environment since 2017. The SEC issue has evidently, harmed our share price and we hope the regulator can see this and will look for a resolution that benefits shareholders.”