The management the Nigerian Stock Exchange (NSE), on Tuesday announced a reclassification of e-Tranzact International Plc from Medium Priced to
Low Priced Stock in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules).
Justifying the move, a statement by the NSE recalled that “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 of shares or above. These Low-Priced Stocks are securities that have traded below N5 per share in four out of the last six months period.”
Continuing, it said the share price of e-Tranzact fell below the N5 mark on February 15, 2018 and traded below it up till the close of business on August 31, 2018, which translates to trading below the threshold over the last six months to warrant the “reclassified from Medium Priced Stock to low priced stock effective (Wednesday) September 12, 2018.”