NGX RegCo suspends trading in Oando shares over ‘failure to submit’ financial results

NGX Regulation Limited (NGX RegCo), the regulatory arm of the Nigerian Exchange Group (NGX), has suspended trading in the shares of Oando Plc effective today.

Godstime Iwenekhai, head, issuer regulation department of NGX, announced the suspension in a notice to trading licence holders on Thursday.

The development comes seven months after the oil firm was suspended in South Africa. 

On March 28, Oando said trading on its shares had been suspended by the Johannesburg Stock Exchange (JSE) due to its inability to meet the extended deadline to publish its 2022 audited year-end results.

However, in the latest development, NGX RegCo said it is suspending the indigenous oil firm because it failed to submit its audited financial statements for the year ended December 31, 2023.

“Trading License Holders and the investing public are hereby notified that pursuant to the provisions of Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules), which states that: ‘If an Issuer fails to file the relevant accounts by the expiration of the Cure Period,” the notice reads.

“The Exchange will: a) Send to the Issuer a) ‘Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; b) Suspend trading in the Issuer’s securities; and c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.

“Trading in the shares of Oando Plc has been suspended from the facilities of Nigerian Exchange Limited (NGX or The Exchange) effective today, Thursday, 24 October 2024 for not filing their Audited Financial Statements for the year ended 31 December 2023.”

The regulator further said in accordance with the default filing rules set forth above, “the suspension of trading in the shares of Oando Plc shall be lifted upon the submission of the relevant financial statements”.

In September, Oando crossed the N1 trillion market capitalisation threshold at the close of trading on September 2 — two weeks after the company completed the acquisition of a 100 percent shareholding interest in the Nigerian Agip Oil Company (NAOC) from Eni, an Italian oil major.