The Nigerian Stock Exchange, NSE, yesterday, announced the re-classification of Oando Plc from medium-priced stock to low-priced stock.
The reclassification, according to the exchange, in a notice, took effect from yesterday and is in compliance with its pricing methodology.
Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period.
The NSE said: “This is in compliance to Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules). Oando dropped below the N5 mark on April 30, 2019, and traded below N5 up till close of business on August 30, 2019.
“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,” the NSE added.
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According to 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 of the last six months, or new security listings that are priced above N100 at the time of listing on The Exchange.
Recall that Oando has been embroiled in crisis following the petition filed against it by two of its shareholders over financial mismanagement by the management team.