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Substantial investor takes out N457.63m from NGX Group, as firm loses investors’ confidence

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Cardinal Stone Partners Limited has sold its investment in NGX Group amid investors’ loss of interest in the company during the third quarter of 2022, a filing obtained has shown.

The substantial shareholder sold 25,423,999 units of shares held in NGX Group to take out its N457.63 million investment from the company. The sale was made on September 22, 2022.

Cardinal Stone’s decision to sell the over 25.42 million shares on the exchange floor of the Nigerian Exchange Limited (NGX) comes at a period NGX Group’s share is losing value in the eyes of investors and demands for it dropping.

Ripples Nigeria market analysis of NGX Group gathered that in the current quarter, which starts from July and ends in September, NGX Group’s share has fallen by 13.9% within the three months.

This indicates shareholders were willing to sell their shares at a lower cost of N19.80kobo, reducing their asking price by N3.2kobo, considering NGX Group’s stock opened Q3 2022 with N23 per share.

Read also: NGX: Investors lose N124.9bn to sell-off in BUA Cement, Guinness

As a result, the total investment value held by shareholders of NGX Group has lost over N6.28 billion in the third quarter of this year, after the market capitalisation of the firm fell to N45.17 billion as at September 27, down from N38.88 billion it was valued at the end of the second quarter 2022.

The decline comes amid criticism of the management of NGX Group, with shareholders, Olayinka Olajuwon and Bamidele Ibironke threatening to sue the company over the board’s decision to exclude shareholders from crucial annual general meeting by using proxy.

Ripples Nigeria had reported that the shareholders, through their lawyers, S.O.&C Legal, demanded that the management halt some requests it plans to ask for passage through proxy on September 30, 2022.

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