The Nigerian Stock Exchange (NSE) has delisted the entire issued share capital of First Aluminium Nigeria from its Daily Official List following the company’s request for voluntary delisting.
Mr Godstime Iwenekhai, NSE Head of Listings Regulation Department, said on July 31, 2019 that the entire issued share capital of the company were delisted from the Daily Official List of the exchange.
Iwenekhai said that the delisting was further to its market bulletin of May 13 which notified dealing members of the suspension of trading in the shares of the company in preparation for the voluntary delisting.
NSE in May suspended trading in the shares of the company ahead of its voluntary delisting.
The NSE notified dealing members that in preparation for the voluntary delisting of the issued share capital of First Aluminium, Apel Asset Limited, on behalf of First Aluminium, had requested that the issued share capital of the company be placed on suspension.
It said: “In view of the above, the shares of the company will be placed on suspension effective May 15.
“Dealing members will be notified of further developments regarding the delisting of the company.”
First Aluminium, had earlier, explained to shareholders that the current illiquidity in the capital market had rendered the primary corporate objective of its listing to raise capital and provide liquidity unattainable.
It said it was seeking a voluntary delisting from the main board of the NSE as there had been little or no trading activity on the shares held by the minority shareholders over the last seven years.
The company said neither it nor any shareholder was benefitting from the continued listing on the NSE.
“The majority shareholders (with over 75 per cent shareholding) are the promoters of the transaction and the majority shareholders wish to offer other shareholders (the minority shareholders) the opportunity to either remain shareholders of the unlisted company or accept a consideration for their shares which the majority shareholders are willing to purchase,” it said.