The Nigerian Stock Exchange on Thursday announced the reclassification of Oando Plc from Medium-Priced Stock to Low-Priced Stock.
A statement by the Exchange said the reclassification became effective Thursday.
This is in compliance to Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules), the NSE said.
Oando shares dropped below the N5 mark on April 30 and traded below N5 up till the close of business on August 30.
Low-Priced Stocks are securities that have traded below N5 per share in four out of the last six months period.
For upward or downward movements in price to occur on any Low-Priced Stock that is priced at below N5 and listed on the NSE, stockbrokers are required to trade a minimum volume of 100,000 units and tick size of N0.01kobo.
According to the NSE Rulebook, for purposes of calculating price movements and price limits, equity securities traded on the Exchange are classified as groups A and B.
Group A, the rule says, shall consist of equities with a Primary Market Maker that are not classified in Group B.
Similarly, Group B shall consist of equities with a Primary Market Maker that are priced above N100.00 per share for at least four (4) of the last six (6) months, or new security listings that are priced above One Hundred Naira (N100) at the time of listing on The Exchange.
In recent times, Oando shares have underperformed in the NSE index, amid rows with regulatory agencies.
In May, SEC ordered Oando’s Group Chief Executive Officer, Wale Tinubu, and other affected board members to resign.
In June, the Securities and Exchange Commission (SEC) directed Oando Plc to suspend its scheduled Annual General Meeting. Later in the same month, some officials of the Nigerian Police stormed the company’s office in Lagos and barred staff from gaining access.
But the company in its reaction alleged infractions, adding that the penalties were unsubstantiated and calculated to prejudice the business of the company.