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NairaMan Forum / Business / SEC LIFTS TECHNICAL SUSPENSION ON OANDO PLC SHARES (1 Post | 364 Views)
SEC LIFTS TECHNICAL SUSPENSION ON OANDO PLC SHARES by mokongwu(: 9:33 pm On Apr 16
The right thing was done in lifting the technical suspension on Oando, as this had negatively affected the shareholders of the company and the capital market
• All shareholders where in one way or the other disadvantaged by the continuance of the technical suspension, but the class of shareholders most affected by this hiatus where the small shareholders who, for the last six (6) months have been unable to sell their shares at a price that is reflective of the true value of their investment but are forced to sell at an artificial price whilst the technical suspension remains in place.
• During the period the Company’s shares were placed on technical suspension, the NSE’s All-Share Index has gained c.14%. By virtue of the sustained suspension, the shareholders have been unable to benefit from the positive sentiments in the market within this period. It is also important to note that Oando PLC’s stock was a major contributor to the NSE 30 Index’s performance particularly in the first three quarters of the year 2017, prior to the suspension; thus, the relevance of the stock cannot be overemphasised.
• The company and its shareholders have been denied of reaping the benefits of being listed on the stock exchange such and denied the ability of the company to raise money as well other financing options and access to investors
• Eroded brand equity of the company
• The suspension means that the share price of the company does not reflect the intrinsic value of Oando PLC’s business. During the period of the technical suspension, the company had various activities that could have impacted the share price of Oando shares
o N7.1Bn PAT in Q3 2017
o Peace Accord with Mangal
o Wings Office Complex Commissioning
o Brent Crude Prices Rose to $71.17
o Oando PLC awarded mandate to develop Ajaokuta-Kaduna-Kano Gas Pipeline Project
• The share price has risen significantly from the lifting of suspension, and is evidence of the fact that the technical suspension should have been lifted to the benefit of the shareholders and the rest of the capital market. Share price has risen to N7.55 on 16 April, 2018 from N5.99 on Thursday 12 April, 2018.
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