capital market
NGX delists Arbico Plc shares from daily official list
The Nigerian Exchange Limited (NGX) has delisted the Shares of Arbico Plc from its Daily Official List of NGX.
This was contained in the Exchange’s Weekly Report as seen by Nairametrics.
The delisting follows the NGX’s approval of the Company’s application to delist its entire issued share capital
The statement reads, “We refer to our market bulletin of 17 May 2024 with reference Number: NGXREG/IRD/MB26/24/05/17 wherein the Market was notified of the suspension placed on trading in the securities of Arbico Plc (Arbico or the Company) in preparation for the delisting of the Company.
“Following the approval of the Company’s application to delist its entire issued share capital from the Nigerian Exchange Limited (NGX), please be informed that the entire issued share capital of Arbico was on Monday, 20 May 2024, delisted from the Daily Official List of NGX.”
Shareholders of Arbico Plc have recently approved the voluntary delisting of the company’s issued and fully paid-up ordinary shares from the Nigerian Exchange Limited.
According to a statement, this approval was part of the resolutions passed at the Extraordinary General Meeting of Arbico Plc, which took place last week in Kuto, Abeokuta.
The notice further details the process for the voluntary delisting, stating that shares held by dissenting shareholders will be acquired by the majority shareholder. The registrars will distribute the exit consideration to dissenting shareholders in accordance with the rules of the Nigerian Exchange Limited on delisting.
Arbico Plc, a Nigerian construction and civil engineering company, has been facing financial challenges in the last few years.
This strategic move by Arbico Plc marks a new phase for the company, potentially aiming for greater flexibility and operational efficiency away from the public market’s scrutiny.
The decision comes at a time when the company has reported significant financial challenges, shifting from profitability in previous years to a substantial loss in the latest fiscal year.
Despite a recent increase in revenues, rising to N19.5 billion in 2023 from N8.45 billion in the previous year Arbico Plc faced financial difficulties, recording a loss after tax of N1.08 billion in the full year of 2023 compared to a profit of N358.16 million a year earlier.
The delisting may offer Arbico Plc a pathway to restructuring and refocusing its business model to navigate through its current financial turbulence. The majority shareholder of Arbico Plc is R28 Ltd, which holds approximately 69.97 percent of the shares and is owned by Nigerian billionaire Chief Kensington Adebutu. AOG Ltd owns 10 percent of the shares, while the remaining 20 percent is owned by various Nigerian investors.
The company closed its last trading day on Tuesday, April 16, 2024, at N1.03 per share on the Nigerian Stock Exchange (NGX).
By Ifeoluwakitan Afolabi
Shareholders of Total Nigeria Plc have praised the company for its consistent dividend payment despite the challenging operating environment.
At the company’s Pre-Annual General Meeting (AGM) held in Lagos, stakeholders commended Total’s entrenched safety culture, innovation, and good corporate governance for its impressive performance.
Mrs. Ifeyinwa Chinwe, a stakeholder, attributed the company’s success to its commitment to excellence and urged the government to create a more business-friendly environment to encourage companies like Total to thrive.
She also emphasised the importance of individual actions in promoting sustainability, encouraging everyone to adopt eco-friendly practices like recycling, conserving energy, and reducing plastic use.
The shareholders’ appreciation and Mrs. Chinwe’s call to action highlight the importance of collaboration between businesses and individuals in driving growth and sustainability in Nigeria.
Addressing the shareholders, the chairman Mr Jean-Phillipe Torres said he was glad to meet everyone once again, especially the fact that he’s back to Nigeria and that Nigeria has become a place where he could call home.
He encouraged everyone to please do better and ensure they are doing the right thing at the right time.
“In 2023, TotalEnergies reported a turnover of $281.7 billion. For 2024, their Q1 2024 results indicate a slight increase in turnover compared to Q1 2023, reflecting higher energy prices and increased production,” he said.
The equities market resumed from the Eid-El-Kabir holiday with investors losing N47 billion at the end of trading session on Wednesday.
This followed a dip in the share price of stocks like Caverton, ABC Transport, and NB amongst others on the trading floor today.
After five hours of trading at the capital market, the equity capitalisation crashed to N56.4 trillion from N56.5 trillion posted by the bourse on Friday.
Similarly, the All-Share Index (ASI) decreased to 99,840.95 from 99,925.29 recorded the previous trading day.
The market breadth was positive as 40 stocks advanced, 15 declined, while 70 others remained unchanged in 9, 899 deals.
UPL, Guinness, and Champion led other gainers with 10 percent, 9.96 percent, and 9.83 percent growth in share price to close at N2.75, N66.25, and N3.24 from the previous N2.50, N60.25, and N2.95 per share.
On the flip side, Caverton, ABC Transport, and NB led other price decliners as they shed 9.62 percent, 9.52 percent, and 8.37 percent each to close at N1.41, N0.57, and N29.00 from the initial N1.56, N0.63, and N31.65 per share.
Veritaskap traded 55.731 million shares valued at N443 million in 103 deals.
On the value index, Fidelity Bank recorded the highest value for the day trading stocks worth N11.3 billion in 466 deals followed by Geregu which traded equities worth N1.09 billion in 61 deals.
MTN Nigeria traded stocks worth N596 million in 454 deals.
The naira, Nigeria’s currency on Wednesday traded flat at N1,490 on the parallel market, popularly called the black market, following improved dollar liquidity in the foreign exchange (FX) market.
When compared to last week’s rate of N1,495, the naira recorded a marginal gain of 0.33 percent per dollar on the black market.
A total of $5.95 billion from the World Bank and Afreximbank entered into the Nigerian economy, helping to strengthen Nigeria’s external reserves and the naira.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed flat on Friday, gaining marginally by 0.06 percent as the dollar was quoted at N1,482.72 on Friday as against N1,483.62 closed on June 10, 2024, according to the data obtained from the FMDQ Securities Exchange Limited.
The dollar supply by willing buyers and willing sellers increased by 13.47 percent to $183.47 million on Friday, June 15, 2024 from $161.69 million as of June 10, 2024, according to data from the FMDQ Securities Exchange Limited.
Nigeria‘s foreign currency reserves have risen by 2.19 percent month-on-month, following streams of dollar inflows from international financial institutions.
Data from the Central Bank of Nigeria (CBN) revealed that external reserves grew to $33.159 billion as of June 11, 2024 from $32.447 billion in May 10, 2024.
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