The Nigerian Exchange (NGX) has upgraded Okomu Oil Palm from a medium-priced stock to high-priced stock following recent appreciation in the share price of the agricultural company.
In a circular, the Exchange stated that the reclassification, which took effect from November 03, 2021was after a review of share price of Okomu Oil Palm over the most recent six months.
According to the NGX, the review of Okomu Oil Palm’s price trade over the most recent six month period provided the basis for reclassifying the security from the medium- priced stock group to the high-priced stock group. The reclassification also necessitated the attendant change in the tick size change from 5.0 kobo to 10 kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the Exchange, 2015.
“Okomu Oil Palm Plc stock price appreciated above the N100 price level on June 8, 2021 and traded above N100 up till close of business on October 22, 2021. ‘’
This indicates that Okomu Oil Palm Plc stock price has traded above N100 in at least four months out of the last six months,” NGX stated.
The NGX classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price. A company must have traded for at least four out of the most recent six month period within a stock price group’s specified price band to be classified into the category.
The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.
The medium-priced stocks consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.
The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.