Shareholders of Dunlop Nigeria Limited may soon suspend trading in their shares at the Nigerian Stock Exchange.
This is because Dunlop maybe placed on technical suspension pending the determination of the actual current price value of its share. At present Dunlop has two prices 86 kobo and105 kobo.
Though the director general of NSC, Mr. H. I. Alile could not be reached for comments, experts in capital market operations told The Republic that two official prices cannot go for the same company, the Securities and Exchange Commission, SEC has to revalue Dunlop shares and come to terms with its real value.
When this begins, Dunlop will go on technical suspension until the exercise is over as it is the practice in the Nigerian Stock Exchange, to give technical suspension to companies issuing new shares, those entering into mergers, and those for price valuation.
Meanwhile, Grommac Industries the first company to be quoted on the Second-tier Securities Market, SSM, is on technical suspension from the Nigerian Stock Exchange.
This is because some of its shares are to be offered to the public. The Republic learnt that Centre Point Investment which introduced Grommac into the stock exchange is holding back 13% of the floated shares. Until this is sold out Grommac shares will not be traded on the Nigerian Stock Exchange. Its quoted price will remain at 94 kobo.
Grommac however is not the first company to be given technical suspension. Lever Brothers Nigeria Limited faced a similar situation when it acquired Lipton shares, because of the merger, Lever Brothers Nigeria Limited had to go on technical suspension at the stock exchange until the merger was formalised.