The Nigerian Stock Exchange (NSE), in January this year, moved the minimum price floor from N0.50 to N0.10, and several penny stocks, mostly from the insurance space, soon fell to this price point. Perhaps in response to pressure from stakeholders, the floor has since been moved upwards to N0.20.
Here is a look at the lowest priced stocks currently on the exchange.
African Alliance Insurance Company Plc
The company was incorporated as a private limited liability company in 1960. It became a public liability company following the successful completion of the private placement exercise undertaken by the company in June 2008, and got listed on the NSE in September 2009.
African Alliance Insurance Company has a history of poor corporate governance. The company has consistently failed in submitting its annual reports on time and has thus been fined by the Nigerian Stock Exchange. In July 2017, the company was fined by the NSE for late submission of results.
In April 2018, the company was again fined by the NSE for late submission of reports.
The company’s most recent result, which are for the 9 months ended September 2017, shows that gross premium written fell from N12.9 billion in 2016 to N5.1 billion in 2017. The firm also made a loss after tax of N2.1 billion in 2017 as against a profit after tax of N1.3 billion made in 2017.
Shareholders in the company have suffered huge losses. From an initial listing price of N3.50, the company is currently trading at N0.20.
In essence, the shareholders have lost 94.2% of their original investment, if they had held since listing.
Yesterday, the stock closed at N0.20 on the Nigerian Stock Exchange session.
Courteville Business Solutions Plc
Courteville was incorporated as a private limited company on January 4, 2005 and commenced operations on that date. The company became a public one in 2008 and was quoted on the NSE in April 2009. On July 28, 2011, it changed its name from Courteville Investments Plc to Courteville Business Solutions Plc. The company’s activities include the development of business solutions and other e-commerce solutions.
Results for the 12 months ended December 2017 show that the company’s revenue dropped slightly from N1.13 billion in 2016 to N1.12 billion in 2017. Profit before tax, however, increased from N34 million in 2016 to N52 million in 2017. Profit after tax was largely flat at N36.8 million in 2017, compared to N36.8 million in 2017.
Courteville in 2009 listed 2.96 billion ordinary shares of 50 kobo each at N2.50 per share. At its current price of N0.20, shareholders have thus lost 92% of their value since listing.
FTN Cocoa Processors Plc
FTN Cocoa Processors was incorporated on August 26, 1991 in Nigeria as a private company limited by shares under the name Fantastic Abiola Nigeria Limited which later became Fantastic Traders Nigeria Limited on August 26, 1998. The company became a public limited liability company on February 29, 2008 and got listed on the NSE.
The principal activities of the company are the processing of cocoa beans and palm kernel into cocoa cakes, cocoa liquor, cocoa butter, palm kernel oil and palm kernel cakes for export and sales to local manufacturing companies.
Recent results for the 9 months ended September 2017 show that revenue fell sharply from N842 million in 2016 to N22.6 million in 2017. The company’s losses also widened from N263 million in 2016 to N463 million in 2017.
FTN Cocoa listed 2 billion ordinary shares of 50 kobo each at N2.50 per share.
At its current price of N0.20, investors have thus lost 92% of their investment since listing
Multiverse Mining & Exploration Plc
Multiverse Mining & Exploration Plc was incorporated as a Private Limited Liability Company, on June 20, 2002. It commenced business on April 1, 2005 and was converted to a Public Limited Liability Company on April 18, 2008. The company’s share was listed on the NSE on October 8, 2008.
The company is engaged in the business of exploring, extracting, prospecting, boring, refining, drilling, producing, and quarry mining of stones and other extractive solid minerals (mainly Lead and Zinc), into different configurations and classifications.
Results for the first quarter ended March 2018 show that revenue fell from N2.4 billion in 2017 to N1 billion in 2018. Losses however reduced from N174 million in 2017 to N53 million in 2018
For shareholders of the firm, investments made in the firm have to be one of the worst ever made. From a listing price of N1.80 per share, the company is currently trading at N0.20. In essence, investors have lost 88.8% of their investment since listing.
Unic Insurance Plc
Unic Diversified Holdings Plc is a new company that was incorporated on September 11, 2015, by the shareholders of the former Unic Insurance Plc (now Unic Insurance Ltd after being delisted) through the restructuring of Unic Insurance Group.
The restructuring arrangement involves the shareholders of the former Unic Insurance Ltd becoming the shareholders of Unic Diversified Holdings; they have thus become minority shareholders in the new firm.
Unic Insurance (formerly known as United Nigeria Insurance Company) was incorporated on April 1, 1965 and commenced operations on October 2, 1965. It became a public limited liability company on February 27, 1990.