The Nigerian Stock Exchange in a press release issued yesterday has reclassified E-Tranzact International Plc (ETranzact) from a Medium Priced Stock to Low Priced Stock effective today.
The change is in line with the NSE’s amended rules on pricing and par value. The rules which were introduced in January, groups stocks into three tiers:
- Group A: Equities trading at N100 and above.
- Group B: Equities trading at between N5 – N100.
- Group C: Equities trading between N0.01 kobo and N5.
Why was it moved?
ETranzact dropped below the N5 mark on 15 February 2018 and traded below N5 up till close of business on 31 August 2018. Thus, ETranzact has traded below N5 over the last 6 months. Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period.
Implications of the reclassification
A minimum of 100,000 units will have to be traded for there to be an upward or downward movement in e-tranzact’s share price. Prior to this, a minimum trade of 50,000 units was required for there to be an upward or downward change in price.
E-tranzact is currently trading at N3.95 in today’s session on the NSE. Results for the half year ended June 2018 show revenue increased from N5.7 billion in 2017 to N7.5 billion in 2018. The company, however, made a loss before tax of N208 million in 2018 as against a profit before tax of N297 million made in the prior year.
The company’s senior management stepped down in May this year following a N11 billion fraud perpetrated on its platform. Pioneer managing Director Mr.Valentine Obi resigned while Mr. Niyi Toluwalope was appointed Acting Managing Director.
Others affected by the management change include Executive Directors Sullivan Akala, Ike Eze, and Chief Technology Officer, Mr. Richard Omoniyi, Head of Operations, Mr. Kehinde Segun.