Unilever, Tranex supplementary equities’ shares to dilute price
Unsilver Nigeria Plc and Trans nationwide Express (Trantex) Plc during the week ended, Friday, 17th November, 2017, listed supplementary shares on the Nigerian Stock Exchange (NSE’s) official list, a development experts say, will further dilute pricing of their shares.
The NSE informed dealing members of the development on Friday that 1,961,709,167 ordinary shares of Unilever were on 16 November, 2017, listed on the Daily Official List of The Exchange.
A statement by the exchange signed by Head, Listings Regulation Department, Godstime Iwenekhai, explained: “The additional shares arose from Unilever’s Rights Issue of 1,961,709,167 ordinary shares of 50 kobo at N30.00 per share in the Ratio of 14:27 ordinary shares held as at 28 June 2017.
With this listing of 1,961,709,167 ordinary shares, the total issued and fully paid up shares of Unilever Nigeria increased from 3,783,296,250 to 5,745,005,417 ordinary shares.
Also, last week’s Friday, 17th November, 2017, a total of 270,027,370 Ordinary Shares of Trans Nationwide Express Plc (Tranex) were listed on the Daily Official List of The Exchange on Friday, 17th November ,2017.
The additional shares listed, the Exchange explained, arose from Tranex’s Rights Issue of 270,027,370 ordinary shares of 50 kobo at N0.80 per share in the Ratio of 3:2 ordinary shares held as at 25 January 2017.
Meanwhile, with the new listing of 270,027,370 ordinary shares, the total issued and fully paid up shares of Trans Nationwide Express Plc has now increased from 198,819,762 to 468,847,132 ordinary shares.
However, cross section of experts have argued that increase in the outstanding shares of Unsilver and Tranex will obviously lead to dilution in the pricing of the affected companies shares, hence more of the market supply for the stocks may begin to outweigh demand for them.
