LAGOS — Trading in Zichis Agro-Allied Industries Plc resumed on the Nigerian Exchange (NGX) Monday, ending a month-long regulatory suspension sparked by an unprecedented 772.36% share price rally.
The stock, which was frozen on February 23 to protect market integrity, reopened at an adjusted price of N8.58. This 50.58% technical reduction from its pre-suspension peak of N17.36 followed a price markdown for a one-for-one bonus issue and a 20 kobo cash dividend.
NGX Regulation Limited (NGX RegCo) confirmed it has concluded its investigation into the “extraordinary price movement” that saw the agribusiness jump from its January listing price of N1.81 in just 22 trading days. The regulator stated that “corrective measures” have been implemented to ensure a fair and orderly market on the exchange’s Growth Board.
Despite the regulatory scrutiny, investor appetite remained high. By 2:00 PM local time, the shares had climbed 9.91% to trade at N9.43. The company recently reported a 299% surge in nine-month profit to N166.5 million, supported by a strong balance sheet with over N1 billion in shareholders’ funds.
Zichis, which specializes in poultry, palm oil, and fish farming, is the latest emerging corporate to face volatility on the NGX Growth Board, a segment designed to provide capital access for high-growth SMEs.
