Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
What Happens to My Shares If a Company Is Delisted from the Nigerian Stock Exchange (NGX)?
When a company is delisted from the Nigerian Stock Exchange (NGX), it doesn't mean your money disappears overnight or your shares become worthless. Let me break it down for you in a simple way that Mama Ngozi would understand.Imagine Mama Ngozi owns the biggest tomato market in the village, and peopRead more
When a company is delisted from the Nigerian Stock Exchange (NGX), it doesn’t mean your money disappears overnight or your shares become worthless. Let me break it down for you in a simple way that Mama Ngozi would understand.
Imagine Mama Ngozi owns the biggest tomato market in the village, and people contribute money to become part-owners of her business. Similarly, when you buy shares of a company listed on the Nigerian Exchange, you become a part-owner of that company. It’s like owning a piece of a real business, not just a number on your phone.
Now, if Mama Ngozi decides to delist her business from the village market voluntarily, it’s similar to a company choosing to leave the stock exchange on its own. There is a structured process where shareholders are usually offered an opportunity to sell their shares before the delisting happens.
On the other hand, mandatory delisting occurs when the regulator forces a company out for failing to meet listing requirements. This is like the village market leaders removing Mama Ngozi for repeatedly breaking the market rules.
So, if a company you’ve invested in is delisted, it depends on why it was delisted:
1. In voluntary delisting, shareholders may go through a formal exit process, like a buyback.
2. In mandatory delisting, the shares are no longer traded on the exchange, but it doesn’t mean the company has disappeared.
As a smart investor, you shouldn’t just buy shares and forget about them. Follow the company, understand its business, and pay attention to official updates. This way, you can make informed decisions and not be caught off guard when a company you’ve invested in is delisted.
Now, do you see how important it is to stay informed about the companies you’ve invested in, even after buying shares?
See lessWhat Happens to Physical Share Certificates When a Company Is Delisted From the NGX in Nigeria?
When a company’s shares are in certificate form and the company is no longer traded on the Nigerian Exchange Group (NGX), several things could have happened — and your shares may still have value depending on the situation. Let me break this down clearly: 1. The Company Was Delisted (But Still ExistRead more
When a company’s shares are in certificate form and the company is no longer traded on the Nigerian Exchange Group (NGX), several things could have happened — and your shares may still have value depending on the situation.
Let me break this down clearly:
1. The Company Was Delisted (But Still Exists)
This is the most common case.
A company may be removed from NGX because:
It failed to meet listing requirements
Poor financial performance
Mergers or restructuring
Voluntary delisting
What happens to your shares?
You still own part of the company
But you cannot sell easily on NGX
The shares become illiquid (hard to sell)
You may still:
Receive dividends (if company still pays)
Sell privately (off-market transactions)
2. The Company Was Acquired or Merged
Example:
Company A merges with Company B
Your shares may be converted to another company’s shares
Or you may be paid cash
In this case:
Your share certificate may need verification or conversion
3. The Company Went Bankrupt / Liquidated
This is the worst case.
If the company:
Became insolvent
Was liquidated
Closed completely
Then:
Shares may become worthless
Investors are paid last after creditors
4. Your Shares May Still Be Valid But Need Dematerialization
Since your shares are in certificate form, they are likely not yet in electronic format (CSCS).
In Nigeria, you may need to:
Open a CSCS account
Submit share certificate to registrar
Convert to electronic shares
This process is called: Dematerialization
You can do this through:
A stockbroker
Or the company’s registrar
What You Should Do (Step-by-Step)
Check if the company still exists
Contact the company’s registrar
Ask your stockbroker for guidance
Verify with Securities and Exchange Commission Nigeria (SEC)
Important Question For You
Tell me:
The company name
Whether you inherited the shares or bought them
I’ll tell you exactly:
If they still have value
What you should do next
Many Nigerians still hold old paper share certificates that actually still have value — so don’t assume they are useless yet.
See less