Following its voluntary delisting from the Nigerian Stock Exchange (NSE), Great Nigeria Insurance Plc (GNI) has listed its shares on NASD OTC Securities Exchange Plc.
Confirming the development, the over-the-counter platform (NASD) made known that it had listed GNI’s shares on its platform and the shareholders of the company can start dematerialisation and trading on their shares.
NASD pledged to continue to support GNI by creating liquidity, which was what influenced the insurance company’s decision to delist on the NSE.
Recall that in January 2019, GNI voluntarily delisted from the NSE, a move that saw all issued share capital of the company delisted from the stock market.
“Further to our market bulletin of December 13, 2018, notifying dealing members of the approval of the application filed by MBC Securities Limited on behalf of Great Nigeria Insurance Plc for the voluntary delisting of the entire share capital of GNI, please be informed that the entire issued share capital of GNI were today, January 25, 2019, delisted from the daily official list of the Nigerian Stock Exchange,” the Head, Listings Regulation Department, NSE, Godstime Iwenekhai disclosed in a statement.
Nairametrics understands that the delisting was sequel to GNI’s request, where they had opted to revert to a private limited company. The company was listed on the NSE in October 2005.
[READ ALSO: CBN warns MfBs against hoarding as lenders begin to disburse N100, other lower notes]
Why GNI delisted: The company had informed its shareholders in an explanatory note on December 24, 2018, that since 2013, there had been no benefit listing on the stock exchange. Over the last five years, there had been little or no trading activity on the shares held by the minority shareholders.
The company stated, “Shareholders are not benefitting from the continued listing as they are not getting any exit opportunity and their investments have been locked up as they find it difficult to dispose of their shareholding.
“Neither has the company benefited from listing on the Exchange as the company’s shares continue to trade at a significant discount to the intrinsic value. Moreover, the company is bearing unnecessary cost in complying with its listing obligations.”
What you should know: GNI joined other Nigerian companies on the NASD. The companies include –Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; and Fan Milk Plc, popular manufacturer of Fan Yoghurts, NIPCO Plc, amongst others.
About the OTC platform: Inaugurated in July 2013, NASD is registered by the Securities and Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds, and securities not listed on the NSE.
[READ ALSO: Ellah Lakes secures shareholders’ approval to increase N1 billion share capital]
