Oando shares hit NSE daily price ceiling of 10%

To the relief of Oando shareholders, investors and the general public, the technical suspension on the trading of the company’s shares was lifted for a second time by the Nigerian Stock Exchange (NSE). The shares of the company commenced trading on the capital market on the morning of Thursday April 12, 2018 following a directive by the Securities and Exchange Commission (SEC).
The 176 days technical suspension was hitherto lifted on the morning of April 11, 2018 following an April 9, 2018 directive by the SEC. However, three hours into trading, the NSE reinstated the technical suspension. In a statement released by the NSE, on the evening of April 11, 2018 the Exchange explained that they reinstated the technical suspension based on a new directive from the SEC, throwing the financial market into chaos. The share price commendably rose to N6.30, a 5.8 percent increase from N5.99 within three hours of trading on Wednesday morning, April 11. The regulator briefly re-imposed the suspension on the same day, citing SEC directives but then lifted it again by Thursday, April 12.
The NSE’s statement went further to say: “In the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission please be advised that at the start of trading, 12 April, 2018, trading in Oando’s shares will resume without any impediment in price movement consistent with the NSE’s market structure.”
On its first full day of trading, Oando’s shares were already highly sought after. According to the Chief Compliance Officer and Company Secretary, Ms. Ayotola Jagun; “On day one, 178 million Oando shares were on bid with only 5.5 million available for sale. The Company’s share price hit the NSE daily price ceiling of 10 percent by 10.45am; further evidence that there is a lot of interest in Oando shares and that the general mood around the market and our shares is positive.”
Speaking on the lifting of the technical suspension, Managing Director of Financial Derivatives Company, Bismark Rewane noted that, “The way we handle these matters also sends a clear signal to potential, existing and international investors that this market is transparent, accountable and is there to protect all interests and not to be used for punitive purposes.” Bismark advised that the market regulators should learn from their mistakes on the handling of Oando’s issue and ensure it is not repeated in the future.
In a statement from Oando they indicated that the forensic audit into the affairs of the company is currently underway by Deloitte Nigeria (Deloitte), the SEC appointed forensic team lead. According to the Company’s statement; “To date, the Company has been fully cooperative with both the SEC and Deloitte. In the spirit of goodwill, transparency and full disclosure, we will continue to cooperate with the SEC and its nominated parties in the discharge of their duties as the Capital Markets regulator during this exercise.”
Bismark Rewane further advised that the commission should commit the resources needed to conclude the forensic audit on Oando as the market cannot wait indefinitely.