Newly listed Zichis Agro-Allied Industries Plc is set to launch an initial public offering (IPO) of about 800 million shares as it seeks to expand operations and improve stock liquidity.
The disclosure was made by the company’s Managing Director and Chief Executive Officer, Mrs. Anthonia Akabosi, in an exclusive interview with Nairametrics.
The planned offering comes barely months after the company’s listing on the Nigerian Exchange (NGX), which has been marked by an extraordinary surge in share price and heightened investor demand.
The company’s stock closed its last trading session on Thursday, April 2, 2026, at N14.14 per share, reflecting strong market interest despite recent regulatory scrutiny. The IPO, expected to hit the market after April 30 Annual General Meeting (AGM), will increase the company’s share capital from 1.2 billion shares to 2 billion shares.
What Zichis CEO is saying:
The company says the IPO is carefully structured to balance expansion needs with shareholder value preservation. It also aims to address the persistent scarcity of its shares in the market while maintaining price stability.
- “The fact is that we have limited number of shares; 1.2 billion is too small for over 100 million Nigerians. So, to increase it, we need to do IPO. We are looking to float the IPO in April or May after our forthcoming annual general meeting (AGM),” said the CEO.
- “I can’t say the unit price for the IPO. The market will determine the price. The IPO will be anchored by our stockbrokers.”
- “We want to grow organically. We don’t want to come to this market and give investors false hope… We want to ensure commensurate returns to our shareholders.”
- “But every Nigerian cannot get the shares… Not every Nigerian will get the shares.”
The CEO emphasized that the company is deliberately limiting the offer size to 800 million shares to avoid diluting value and to ensure sustainable returns for investors.
More insights:
Zichis has remained one of the most talked-about stocks on the NGX following its dramatic price movement since listing. The NGX recently lifted a suspension placed on the stock after investigating its unusual trading pattern.
- The stock surged by about 800% within weeks of its January listing, prompting regulatory intervention. It peaked at N17.36 per share before trading was halted on February 23, 2026.
- Following a 1-for-1 bonus issue and dividend payout, the price adjusted to N8.58 but has since rebounded to N14.14.
- The stock currently ranks as the best-performing equity on the NGX in terms of year-to-date performance, with gains exceeding 661% ex-bonus/dividend.
- Analysts remain divided over the drivers of this rally. While some question the sustainability of such rapid appreciation, others point to the company’s fundamentals, including dividend payouts and operational performance, as justification for investor interest.
Market participants also highlight the role of limited share supply. With only about 600 million shares at listing (now 1.2 billion) and strong daily demand exceeding 300 million units, scarcity has significantly contributed to upward price pressure.
Analysts view:
There have been questions around what factors are driving the stock price to unprecedented highs, with some saying the price gain is not ordinary. But stock traders hold different views, insisting that it is driven by the equity fundamentals.
- “A company that just came in January, they were able to pay 20kobo dividends and give a bonus of 1 for 1. The price rose to N17.36 per share before suspension. After the bonus and dividend, the price was marked down to N8.58 per share to reflect the ex-bonus and dividend adjustment. People are questioning the fundamentals,” said Mr. Charles Fakrogha, CEO of ECL Assets Management Limited.
- “They have been tested and tried by the harsh economic environment. Before they came to the market, they had a track record of about three years for the bonus. For them to declare dividends means there was profit and there were fundamentals. So, there was a profit in their audited results for 2025″, Mr. Fakrogha insisted.
- Another stockbroker who didn’t want his name mentioned said, “I’m aware that they (referring to stockbrokers that brought Zichis for listing) were begging other stockbrokers to subscribe to Zichis during the private placement.
- “They were trying to sell to as many brokers as possible. Most of them said they were not interested. They refused to subscribe. That took them about three years. Now, because people have seen the prospects in the company, everybody wants to come in. Unfortunately, the shares are very limited; only about 600 million at listing and now 1.2 billion after a bonus issue,” said the stockbroker.
According to him, the company’s payouts combined with the scarcity of the shares have driven the stock price to its high levels.
Get up to speed
Zichis Agro-Allied Industries Plc was admitted to trading on the NGX Growth Board on January 20, 2026, via listing by introduction at N1.81 per share. Within one month, the stock surged to N17.36, representing more than an 800% increase.
- The stock’s rapid rise from N1.81 to N17.36 within one month triggered concerns from regulators, leading to a temporary suspension of trading.
- The NGX cited Rule 7.0, which allows trading halts to protect market integrity and investors.
- Trading resumed on the stock after NGX lifted the suspension at the conclusion of its month-long investigations.
- Within the period, the company announced its scrip issue of 1-for1 and 20kobo per 50kobo share dividend. The qualification date for the bonus and dividend was March 16, 2026.
- After adjustments for the 1-for-1 bonus issue and a 20 kobo dividend, the price reset to N8.58 before climbing again.
- Daily bid volumes for the stock have consistently exceeded 300 million units, indicating strong unmet demand.
Before listing, the company reportedly struggled to attract investors during its private placement phase, with some stockbrokers declining to subscribe. However, improved visibility and strong performance metrics have since reversed sentiment, making the stock highly sought after.
What you should know
The planned IPO is primarily aimed at improving liquidity and addressing the persistent scarcity of Zichis shares in the market. However, market operators suggest that the additional 800 million shares may only partially resolve the supply-demand imbalance.
- While NGX suspension and investigation lasted, Zichis released its audited financial results for the year ended December 31, 2025, showing significant growth in its operations.
- Revenue rose by 133.79% to N675.6 million from N288.9 million recorded in 2024.
- Profit before tax increased to N364.21 million from N69.93 million, while profit after tax climbed to N326 million.
- Gross profit reached N462.8 million compared with N135.5 million in the previous year.
- Total assets expanded to N1.22 billion, with property, plant and equipment accounting for N741.3 million.
- The company also paid a dividend of 20 kobo per share, higher than the 5 kobo paid the previous year, in addition to a one-for-one bonus share issue subject to shareholder approval.
Despite the anticipated increase in share supply, analysts believe the IPO may only ease scarcity rather than eliminate it entirely. The company’s cautious approach—limiting the offer size and allowing the market to determine pricing—signals a focus on long-term value rather than short-term capital raising.
As Zichis prepares to enter the market with its IPO, investor’s attention will remain fixed on how the additional shares impact liquidity, pricing dynamics, and overall market confidence in one of NGX’s most remarkable recent listings.
