NGX reclassifies United Capital to medium price stock group

Trading License Holders have been notified of the reclassification of United Capital Plc from the Low-Priced Stock Group to the Medium-Priced Stock Group, in line with The NGX’s Pricing Methodology framework.

According to a notification by the Nigerian Exchange  Limited, equity securities of quoted companies on the NGX are classified into three Stock Price Groups or Categories – High-Priced, Medium Priced, and Low-Priced Stocks, based on their market price.

In this regard, securities 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.

“Accordingly, a review of United Capital Plc stock price and trade activities over the most recent six month period provides the basis for reclassifying the security from the Low-Priced Stock Group to the Medium-Priced Stock Group.

“This reclassification also necessitates the attendant change in the tick size change from N0.01 kobo to N0.05 kobo – in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Trading License Holders’ Rules).

“United Capital Plc stock price appreciated above the N5 price level on March 19, 2021 and traded above N5 up till close of business on July 30, 2021.

“This indicates that United Capital Plc stock price has traded above N5 in at least 4 months out of the last 6 months. Resultantly, United Capital Plc has been reclassified from the Low-Priced Stock Group to the Medium-Priced Stock Group with effect from August 24, 2021,” NGX noted.

United Capital Plc, Nigeria’s leading investment bank had recently announced its unaudited financial statements for the period ended June 30, 2021, showing a profit before tax of N3.74 billion as against N2.27 billion in 2020, accounting for a growth of 65 per cent.

The group recorded revenue of N6.85 billion from N4.45 billion in 2020 accounting for a growth of 54 per cent while delivering earnings per share of 105 kobo.

According to a statement from the firm, the group aims to transform the African continent by providing innovative and creative investment banking solutions to governments, companies, and individuals.

The froup is listed on the Nigerian Exchange Limited (NGX) and is at the forefront of becoming the financial and investment role model across Africa by leveraging on innovation, technology, and specialist skills to exceed client expectations, while creating more value for all stakeholders.

While commenting on the group’s performance the Group CEO, Mr. Peter Ashade, said: “I am excited to inform our stakeholders that United Capital Plc recorded a very impressive half-year 2021 result following a record year performance in 2020.

“We ended the first half of the year on a very high note as reflected in our earnings growth and strong financial performance.

“United Capital Plc is in a growth phase, and I must say that our strong financial performance is a testament of our unwavering commitment to increasing value creation for all our clients amid the harsh socio-economic environment and lingering effects of the devastating pandemic.

“In the remaining half of the year, we will be focused on our transformation agenda by deepening our value propositions to different market segments especially mass affluent and the underserved mass market clients, while driving phased automation of our business processes.

“Our bespoke affluent segment propositions including private trusts, and wealth management solutions are curated to increase, preserve, and transfer wealth for our fast-growing affluent customer base. Furthermore, our best-in-class digital platforms remain central to our purpose of transforming lives and promoting financial inclusion across Africa by providing easy access to collective investment schemes and micro loans while promoting socio-economic development.”

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