Royal Exchange Plc has obtained approval from the Securities and Exchange Commission (SEC) to conduct the signing ceremony about the proposed right issue of 4.116 billion ordinary shares of 50 kobo each at 50 kobo per share.
This was contained in a notice to the Nigerian Exchange Limited and the investment public obtained by the Nairametrics.
According to the company, the right issue will be based on four new ordinary shares for every five ordinary shares held in the company.
The statement signed by Irene Chkukelu, Mazars Ojike, and Partners, Company Secretary of the company disclosed that the qualification date for the rights issue is 6th March 2023, subject to the approval of the executed offer documents by the SEC.
It noted that the application list is expected to open on the 29th of November 2023. Or any other date approved by the Commission and shall open for a maximum period of 28 days.
- “Rights circular will be distributed to shareholders by the company’s registrars, while application forms will made available on the websites of the company and the registrars for ease of access.
- At the appropriate time, shareholders are advised to contact their stockbrokers or financial advisers for more details of the offer,” the company noted.
Suspension placed on the company
The suspension earlier placed on Royal Exchange Plc by the regulatory subsidiary of the Nigerian Exchange (NGX) Group Plc, NGX Regulation Limited, was recently lifted.
Royal Exchange is an asset management company in Nigeria, which also offers insurance protection to its clients.
On July 11, 2023, trading in the shares of the company was suspended as a result of the failure of the board to file its financial statements for the perusal of the investing community.
But after filing its outstanding financial accounts, the embargo placed on the firm was lifted.
The suspension was done according to a circular issued by NGX Limited which stated:
- “We refer to our market bulletin dated July 11, 2023, with Reference Number: NGXREG/LRD/MB26/23/07/11 wherein we notified trading license holders and the investing public of the suspension in the trading on the securities of Royal Exchange Plc for non-compliance with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules), which provides that, If an Issuer fails to file the relevant accounts by the expiration of the Cure Period1, the exchange will: a. Send to the Issuer a Second Filing Deficiency Notification within two business days after the end of the cure period; b. suspends trading in the issuer’s securities, and c. notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.
- “Royal Exchange Plc, whose securities were suspended on July 11, 2023, has now filed its outstanding financial accounts.
- “Given the company’s submission of the outstanding financial statements, and under Rule 3.3 of the Default Filing Rules, which states that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange.
- The Exchange shall thereafter also announce through the medium by which the public and the SEC were initially notified of the suspension, that the suspension has been lifted, trading license holders and the investing public are hereby notified that the suspension placed on trading on the shares of Royal Exchange Plc was lifted on September 13, 2023,” the disclosure stated.
