The Nigerian Exchange Limited (NGX) has announced the delisting of Capital Oil Plc, Goldlink Insurance Plc and Medview due to their repeated failure to comply with post-listing requirements.
This move is part of a sweeping regulatory clean-up aimed at preserving the integrity of the capital market and protecting investors.The affected companies were cited for multiple violations, including failure to file audited financial statements, failure to adhere to corporate governance standards, and prolonged periods of inactivity in the capital market. Specifically, Medview Airlines Plc had not recorded any trading activity since October 15, 2021, and was grappling with a free float deficiency of 14.16 per cent, far below the NGX’s required threshold for publicly listed firms.
Medview Airline Plc was the 83rd most valuable stock on the NGX with a market capitalisation of N15.8 billion, which made about 0.024 per cent of the Nigerian Stock Exchange equity market at the time of delisting.
Similarly, Capital Oil Plc and Goldlink Insurance Plc were found to be in breach of several listing rules. Capital Oil, once a player in Nigeria’s downstream petroleum sector, has struggled operationally and financially in recent years.
The company’s failure to submit financials and other relevant disclosures made it difficult for investors to assess its performance, thereby violating the Exchange’s transparency and disclosure standards.
Capital Oil Plc was the 140th most valuable stock on the NGX with a market capitalisation of N1.17 billion, which was about 0.0018 per cent of the NGX equity market at the time of delisting.
Goldlink Insurance Plc, on the other hand, had been on regulatory watchlists for several years. Despite various interventions, including multiple suspension warnings and compliance directives, the insurer failed to rectify its governance and reporting lapses. Its continued non-compliance with NGX’s rules eventually warranted a delisting.
The company was the 144th most valuable stock on the NGX with a market capitalisation of N910 million, which was about 0.0014 per cent of the NGX equity market at the time of delisting.
The decision to delist these companies was approved by the NGX Regulation Board in June 2024. According to the Exchange, this action aligns with its commitment to upholding market integrity, enhancing investor confidence, and ensuring that only companies that adhere to the highest standards of disclosure and corporate governance remain listed.
Investors holding shares in the affected companies have been advised to seek guidance from their brokers or the Central Securities Clearing System (CSCS) on the next steps regarding their holdings.
The NGX has reiterated that regulatory delisting is not punitive but necessary for maintaining a transparent and trustworthy capital market. Companies that can resolve their compliance issues may reapply for listing in the future, provided they meet all listing requirements.
Meanwhile, investors have welcomed the NGX decision to delist Capital Oil Plc, Goldlink Insurance Plc, and Medview Airlines Plc, describing it as a necessary move to strengthen regulatory discipline and uphold the credibility of the capital market.
According to them, the affected companies had long fallen short of the post-listing requirements, particularly in the areas of timely financial disclosures, corporate governance, and consistent trading activity.
