The Nigerian Exchange Limited (NGX) has suspended trading in the shares of Aso Savings and Loans Plc with effect from Wednesday, November 19, 2025, to allow for the seamless execution of its share reconstruction exercise.
The suspension, announced by the Exchange, is expected to facilitate the reconciliation of records between the company’s registrars and the Central Securities Clearing System Plc (CSCS).
According to the notice issued to trading license holders and the investing public at the weekend, the suspension is a necessary compliance measure aimed at preventing transactions involving Aso Savings’ shares while restructuring is underway.
The action is intended to enable both the registrars and CSCS to reconcile their books in preparation for the listing of the reconstructed shares on the NGX. The Exchange also noted that the suspension will provide clarity in determining the shareholders who qualify to receive the newly structured shares.
Market operators say such suspensions, though occasionally disruptive for investors, are standard practice during share consolidation or capital restructuring. It ensures there is no trading mismatch or potential investor confusion while share adjustments are being finalised.
Why the share reconstruction matters
Share reconstruction, often referred to as share consolidation, is typically undertaken by companies to reduce the number of outstanding shares and increase their nominal value. This is usually implemented to correct a weak capital structure, improve perception, or restore regulatory compliance.
Aso Savings has struggled in recent years with financial challenges, including capital adequacy concerns and operational instability. Industry analysts suggest the reconstruction may be part of wider recapitalisation or restructuring efforts to reposition the mortgage bank.
Although the current notice does not detail the exact ratio of reconstruction, similar exercises usually result in condensed shareholdings. Existing shareholders are expected to receive the transformed shares proportional to their pre-reconstruction holdings.
Prolonged corporate challenges
Aso Savings and Loans Plc, one of Nigeria’s burgeoning primary mortgage institutions, has faced recurrent financial difficulties over the past decade. The company previously underwent regulatory intervention amid liquidity constraints and NGX compliance issues.
Its shares have been thinly traded in recent years, with mounting concerns over statutory compliance and returns to investors.
In 2017, the Central Bank of Nigeria was reported to have stepped in to supervise remedial restructuring. Subsequent efforts to raise new capital or attract strategic investors were slow to materialise due to legacy liabilities.
The latest move to reconstruct shares has been interpreted as a renewed strategy to stabilise the company, strengthen balance sheet quality and possibly pave the way for fresh capital injection.
What investors should know
With a market capitalization of N15.8 billion, the shares have been thinly traded with the price stagnated at N0.50 kobo per share for years after a regulatory sanction suspending trading on the stock due to consistent defaults in post-listing requirements.
However, trading resumed on the stock after NGX lifted the suspension on the stock around October 20, 2025. Since then share price has been trending upwards, hitting N1.03 per share on October 31 before moderating to 86 kobo on November 12. But the stock closed at N1.07 per share on Friday, November 21, 2025.
Trading is expected to remain suspended until the reconciliation process is concluded and resumption is officially approved by NGX. Shareholders are advised to remain patient and follow updates from the company and the Exchange regarding the allocation of restructured shares.
Market analysts caution that post-reconstruction share pricing may reflect adjustments to the company’s valuation, depending on investor response and the clarity of Aso Savings’ broader recovery plan.
