The NGX has reported an incredible performance in 2023, with a year-to-date return of 44%, the best return since 2020.
However, despite the performance, it was quite a tumultuous landscape as there was a flurry of exits, starting with Ardova Petroleum finally delisting in July.
While new listings in the NGX contributed about N179 billion in 2023, delisted companies have withdrawn over N224 billion from the NGX’s market cap.
However, this dynamic has been overshadowed by the market’s resilience displayed in share price growth.
In this article, Nairametrics tracks the companies that delisted from the Nigerian Exchange in 2023.
These departures, while impacting NGX’s market dynamics, foreshadow further changes with pending exits by companies like PZ Cussons Nigeria Plc and GSK Consumer Nigeria Plc.
Ardova Petroleum
In a significant move within the energy sector, Ardova Petroleum Plc made headlines in July 2023 as it finalized the delisting of its 1.31 billion shares from the Nigerian Exchange Group (NGX).
This move had been foreshadowed earlier in February when the company disclosed receiving an offer from its parent company, Ignite Investments & Commodities Limited, to acquire the shares held by minority stakeholders. The proposed buyout came at an offer price of ₦17.38 per share.
Before delisting, Ardova Petroleum had a market cap of N21.5 billion.
Global Spectrum Energy Services Plc
Global Spectrum Energy Services, an oil and gas offshore support vessel servicing company also delisted from the NGX in July, after beginning the process of delisting in June 2022.
The company which provides marine support services, offshore security escort services, and offshore support vehicles, was listed on the NGX in 2007.
However, no explicit reasons were provided for the decision to delist from the exchange.
Union Bank
Union Bank’s delisting after 52 years on the NGX unfolded following Titan Trust Bank’s (TTB) strategic acquisition journey.
TTB, securing an 89.4% stake by late 2021, swiftly increased ownership to 93.4% by June 2022, signalling a drive toward complete control. In May 2023, TTB’s bid for all remaining Union Bank shares at N7 each finalized total ownership.
Union Bank initially set the payout for minority shareholders at N7 per share but later increased it to N7.70 per share.
In November, the bank announced that it was at the final phase of the delisting process. This exit trimmed NGX’s market cap by approximately N193 billion.
Capital Hotels
Capital Hotels, owners of Abuja Continental Hotel, are finalizing their delisting from the NGX after suspending shares in November.
Setting up an escrow account via Cardinal Stone Registrars Limited, they aim to pay shareholders opting for the Exit Consideration of N5 per share.
Despite undisclosed reasons for the delisting, Capital Hotels showed strong financial growth in 2023, with profits soaring by 168% to N502.7 million in nine months.
Still, as they prepare to delist, the NGX is expected to lose N9.5 billion in market cap.
Rak Unity Petroleum
Rak Unity Petroleum, the first Nigerian indigenous company to be listed on the NGX concluded its liquidation process in November.
A statement released by Mrs. Chinwe Chiwete, acting as the Liquidator, served as a formal notification to both the Nigerian Exchange Limited and the investing public regarding the conclusion of the members’ voluntary winding up of RAK Unity Petroleum.
Before embarking on the liquidation process, RAK Unity Petroleum Company had initiated a strategic five-year business plan in January 2016.
This ambitious plan was designed to bolster sales by focusing on the production of branded lubricants while simultaneously aiming to augment profit margins through strategic investments in the direct importation of Diesel.
However, before liquidating, the company sold its physical assets to Asharami Synergy Limited.
What you should know
Some companies are in the process of delisting, and this process is expected to be finalized in 2024. These include PZ Cussons Nigeria Plc and GSK Consumer Nigeria Plc.
Oando Plc announced plans to delist from the NGX, however, the process has been stalled by a pending court case that has been on since 2021.
