NGX to lose N60bn market share worth MRS Oil to NASD OTC Exchange

Bamidele Famoofo

The market capitalization of the Nigerian Exchange Limited will suffer a setback to the tune of about N60 billion if Oil and Gas stock, MRS Oil Nigeria Plc delists its shares on the bourse to move to NASD OTC Exchange.

Total outstanding shares of the company stood at 342,884,708.00 on Friday while price per share of the stock closed at N174.9.

MRS Oil Nigeria Plc announced its decision to voluntarily delist from the Nigerian Exchange Limited (NGX) and move to the NASD OTC Securities Exchange. This follows shareholder approval at the Extraordinary General Meeting (EGM) held on June 25, 2024, in compliance with NGX’s delisting rules and regulatory requirements.

The company stated that the transition to NASD OTC aligns with its strategic objectives and will provide an alternative trading platform for its shares. The voluntary delisting reflects MRS Oil’s restructuring efforts and its decision to operate in a less regulated trading environment, potentially impacting investor participation and market liquidity.

As part of the delisting process, MRS Oil has arranged a payout for dissenting and absentee shareholders, ensuring those who wish to exit receive fair value for their shares. The company has set aside the required funds to settle these shareholders, and the payout window will be open from April 4 to July 4, 2025.

After this period, shareholders who have not opted for the payout will be migrated to the NASD OTC platform, where their shares will continue to be tradable. The company’s registrars will maintain an account for three months and submit a report to the Securities and Exchange Commission (SEC) listing all shareholders who have exited.

A statement signed by Mrs O.M. Jafojo, company secretary of MRS Oil noted that shareholders who wish to claim their dividends or payout must contact the company’s registrar within the stipulated period. They will be required to submit relevant documentation, including proof of shareholding and a valid means of identification. Any unclaimed funds after the deadline will be reverted to the company. Investors who choose to remain shareholders will automatically have their holdings transferred to NASD OTC, where they can continue to trade their shares in the over-the-counter market.