NGX Set To Lose N60bn As MRS Oil Plans To Delist Shares

MRS Oil Nigeria Plc has finalised plans to voluntarily delist all its issued shares from the Nigerian Exchange Limited (NGX) and migrate to the NASD OTC Securities Exchange (NASD). This decision was approved by shareholders at an Extraordinary General Meeting (EGM) held on 25 June 2024.

With a market capitalisation of N60 billion, the company’s outstanding shares stood at 342,884,708 as of Friday, closing at N174.9 per share. The delisting is in compliance with NGX regulations, particularly Rule 1.10 and Rule 1.13 (f), which govern the removal of equity securities from the official daily listing of the exchange.

Payout Plan for Dissenting Shareholders

To ensure a smooth transition, MRS Oil Nigeria Plc has developed a payout scheme for shareholders who were absent from the EGM or opposed the delisting. The company has allocated funds for compensating dissenting shareholders, with clear terms for payout.

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A dedicated account will be maintained through the company’s registrars for three months to facilitate shareholder exits. Shareholders wishing to claim entitlements must do so between 4 April and 4 July 2025. After this period, those who have not opted to receive a payout will be automatically migrated to the NASD platform. Any unclaimed funds will revert to the company.

Additionally, the registrars will submit a detailed report to the Securities and Exchange Commission (SEC), listing shareholders who have exited and received their payments. The company has urged investors to be cautious in dealing with its shares until the delisting process is fully completed.

Awaiting Final Approvals

The effectiveness of the delisting and payout plan is subject to final approvals from both the SEC and NGX. Until then, the company remains listed on the NGX, and trading in its shares continues.

MRS Oil Nigeria Plc has reassured shareholders that the transition to NASD will allow for continued investment opportunities, albeit in a less regulated environment. The company has advised investors to stay informed and take necessary actions regarding their holdings before the deadline.

Financial Performance and Growth

Despite the delisting move, MRS Oil Nigeria Plc has recorded strong financial growth. According to its latest financial results on NGX, the company’s after-tax profit rose significantly from N4.08 billion in 2023 to N6.49 billion in 2024.

Revenue surged by 71 per cent, reaching N312 billion from N182 billion. The increase was primarily driven by the sales of Premium Motor Spirit (PMS), which accounted for 87 per cent of the company’s turnover. The rise in PMS prices played a major role in boosting revenue.

The company’s earnings per share also grew from N11.81 to N18.95, reflecting improved profitability. These figures highlight MRS Oil’s strong financial standing as it prepares for its transition from NGX to NASD.

What This Means for Shareholders

The delisting of MRS Oil Nigeria Plc from NGX marks a significant shift in its operational strategy. Shareholders now face a choice: either claim their payout within the stipulated timeframe or transition to the NASD platform.

Investors should carefully assess their options and consider the implications of the move to an over-the-counter market. While NASD provides a trading avenue, it operates under different regulations compared to NGX, which could affect liquidity and price discovery.

As the final approvals are awaited, shareholders and investors are encouraged to stay updated on further announcements from the company, NGX, and SEC.