Ijeoma Chimaraoke, the largest shareholder in McNichols Consolidated, has been selling off her shares in the company, engaging in about seven share dealings to take out part of her investment in one month.
Ripples Nigeria gathered that Chimaraoke offloaded over 1.29 million shares she held in the fast moving consumer brand between May 5 and May 16, at a period the capital market is bullish on McNichols stock on the exchange floor.
Month-to-date, value of McNichols’ share had appreciated by 130%, as demand for the firm’s stock rose, and during this peak period, Chimaraoke, who happens to be a relative of the firm’s Managing Director, Ekpe Chimaraoke, has been busy selling her holdings.
As of December 2021, the majority investor held 18.87% ownership of McNichols, which represents 61.67 million shares, above the 54.02 million stocks (16.53%) held by the MD, who serves Chimaraoke’s interest on the board.
Chimaraoke is gradually cutting down her investment in McNichols, now holding 60.38 million shares, and reducing exposure to risk, as the recent bullish run subjects the firm to possible profit-taking.
She first sold 170,000 shares on May 5, three days later, she sold 342,000, on May 9, 106,000 shares were offloaded, followed by 120,000 two days after, then on May 12, the investor traded off 170,000, before selling 146,000 the next day, and 245,100 on May 16.
Note that the capital market activities of a firm’s substantial investor is seen as a roadmap for minority investors, and a sell off is seen as a signal of impending downturn in share value, amongst other reasons, while share purchase shows believe that the share has growth prospects.
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