Chinwendu Obienyi
The rising incidence of listed companies on the Nigerian Stock Exchange (NSE) opting for voluntarily delisting from the bourse is now becoming a source of concern to stakeholders, particularly now that new listings are urgently needed.
There are indications that the numbers might still increase after the NSE recently approved an application from Law Union & Rock Insurance to delist its shares from its main board.According to reports, the voluntary delisting is part of ongoing acquisition of Law Union by an Anglophone West Africa private equity firm, Verod Capital Management.
Voluntary delisting is the withdrawal of an issuer’s securities listed on an exchange with the express approval of the holders of its equity after complying with relevant regulatory requirements in that regard.
Available records from the NSE’s website show that about 20 securities have voluntarily delisted from the nation’s bourse in the last 17 -18 years (2002-2020).
The firms that delisted voluntarily included Avon Crowncaps, CFAO Nigeria Plc, Cappa and D’Alberto, Enpee Plc, Impresit Bakalori Plc, IHS Nigeria Plc, Incar Plc, Great Nigeria Insurance, Nigerian Bottling company, Nampak Plc, United Nigeria Textile Plc and Nigerian Textile Mills Plc.