Shares of Oando Plc have fallen just 1.5% since news of an investigation by the Securities and Exchange Commission (SEC) broke two Fridays ago.
The share price dipped to N6.81 on Tuesday this week before bouncing back to N7.43 by close of business Friday. Even though the share price is still off its share price of N8.35, prior to the news of the investigation, analysts believe the impact was probably not as significant as earlier expected. Nevertheless, Oando has lost about N10 billion from its market capitalization. Oando currently has about 12.4 million shares outstanding and trades at N7.39 giving it a current market capitalization of N91.8 billion only.
There has yet been no word by either the Securities and Exchange Commission (SEC) or Oando as to the identity of those behind the petition that prompted the investigation or when it will be concluded.
Channels TV had two Fridays ago, reported that the quoted oil company is currently under investigation by the Security and Exchange Commission over an alleged complaint by some foreign shareholders of the company. Channels Television since pulled down the story following a press release and a rebuttal by Oando.
The marginal drop in price may be a sign the investing community feels the investigation may have a negligible effect on the affairs of the company.