McNichols Consolidated majority shareholder, Ijeoma Chimaraoke, is still in the capital market selling off her shares, as she continues to take out her investment in the firm.
Chimaraoke was involved in three share dealings between Tuesday to Thursday, according to series of documents obtained from the capital market authority, Nigerian Exchange Limited (NGX).
She sold a total of 349,600 shares in different tranches; 129,100 shares on May 19, 114,000 shares on May 18, and 106,500 shares on May 17, to reduce her ownership stake in the fast moving consumer brand.
As of December 2021, Chimaraoke, who is related to McNichols’ Managing Director, Ekpe Chimaraoke, held 18.87% ownership of the company, representing 61.67 million shares.
However, this stake has dropped with Chimaraoke selling of 1.29 million shares from her holdings between May 5 and May 16, amid growth in the firm’s share value which has appreciated by 131.52% this month.
The hike in the firm’s share puts McNichols in the crosshair of profit-takers in the capital market, as investment exit of a majority shareholder or investor sends a signal of future share depreciation, prompting minority investors to sell off their holdings as well.
Chimaraoke has now sold 1.64 million shares in May, while the MD, Ekpe Chimaraoke, maintains his 54.02 million stocks, which represents 16.53% ownership of McNichols.
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