MRS Oil Nigeria Plc, a leading petroleum marketing company in Nigeria, has announced its decision to voluntarily delist from the Nigerian Exchange Limited (NGX) and transition to the NASD OTC Securities Exchange. This move follows the approval of shareholders at the Extraordinary General Meeting (EGM) held on June 25, 2024, in compliance with NGX’s delisting regulations.
As of the delisting announcement, MRS Oil had 342,884,708 outstanding shares, with its stock closing at N174.9 per share.
Reasons for Transition
The company stated that the decision to migrate to NASD OTC aligns with its strategic objectives and restructuring efforts. Moving to the OTC market will provide an alternative trading platform for its shares, allowing MRS Oil to operate in a less regulated environment. While this shift may impact investor participation and market liquidity, the company believes it will benefit from greater operational flexibility.
Payout for Dissenting Shareholders
As part of the delisting process, MRS Oil has arranged a payout plan for shareholders who choose to exit. This includes dissenting shareholders and those who were absent during the EGM. The payout period will run from April 4 to July 4, 2025.
To ensure a smooth process, the company has set aside the necessary funds to settle exiting shareholders. Shareholders who wish to claim their payout must contact the company’s registrar within the stipulated period and submit relevant documentation, including Proof of shareholding and Valid means of identification
After the payout window closes, any unclaimed funds will be reverted to the company.
Migration to NASD OTC Exchange
For shareholders who do not opt for the payout, their shares will automatically be migrated to the NASD OTC platform, where they will continue to be tradable in the over-the-counter market. The company’s registrars will maintain an account for three months and submit a report to the Securities and Exchange Commission (SEC) listing all shareholders who have exited.
About the NASD OTC Exchange
The NASD OTC Exchange is a Nigerian over-the-counter (OTC) securities exchange that facilitates the trading of shares in unlisted public companies. Established in 2013 and regulated by the Securities and Exchange Commission (SEC) of Nigeria, it provides a structured platform for companies to raise capital without listing on NGX.
The exchange supports the trading of equities, bonds, and other financial instruments through an automated trading system, ensuring efficiency and transparency. Both institutional and retail investors, as well as registered stockbrokers, can participate in trading on NASD OTC. Unlike NGX, which is a formal stock exchange, NASD OTC operates as a secondary market for unlisted securities, offering a less regulated but structured trading environment.
