LAGOS – Some capital market operators have attributed incessant de-listing on the nation’s bourse to harsh operating environment and stringent post-listing requirements.
The operators told newsmen in Lagos that the Nigerian Stock Exchange (NSE) should seek friendly economic policies and incentives for quoted companies.
Mr Olaleye Williams, the Managing Director, GlobalView Consult and Investment Ltd., said that listing would be more attractive with the economic environment that would provide growth and expansion opportunities.
Williams said, “A free market economy invites participation in an inclusive manner that leads to fair competition, high performance and productivity.”
He said that the exchange should map out advisory and advocacy strategies aimed at retaining quoted companies.
Williams also advised that listed companies should engage the services of the exchange to seek protection from adverse economic policies of government or seek relief.
“It is in the interest of the exchange that it retains its listings and even increase them continuously and consistently because it is a key factor of growth,” Williams told NAN.
Alhaji Gbadebo Olatokunbo, founding member, Nigeria Shareholders’ Solidarity Association, urged that NSE should ensure proper scrutiny of companies before listing.
Olatokunbo told newsmen that NSE should ensure due diligence before admitting companies on its official list.
He regretted that shareholders were at the receiving end whenever a company de-listed.
“This de-listing is becoming too much, and shareholders are the ones who suffer at the end,” Olatokunbo said.
Olatokunbo suggested that companies seeking listing should be asked to sign bond to refund investors their investment if they should fail to comply with rules.
According to him, this will minimise deceit and de-listing on the exchange.
Reports state that the exchange on Jan. 16 de-listed Cappa & D’Alberto Plc from its official list due to the company’s application for voluntary delisting.
Another company, Avon Crowncaps & Containers (Nigeria) Plc, is planning to de-list from the NSE.
The majority shareholders of Avon Crowncaps, Wilko Corporation, a private company incorporated in Bahamas, has proposed to acquire the minority shareholding of Avon Crowncaps, amounting to 141.158 million shares.
The amount represented 20.64 per cent.
