The Nigerian Stock Exchange has upgraded Vitafoam Nigeria Plc from low-priced stock to medium-priced stock following recent appreciation in the share price of the company.
In a regulatory circular, NSE stated that the re-classification, which took effect from September 14, was after a review of share price of Vitafoam over the “most recent six months.”
According to NSE, the re-classification also necessitated the change in the tick size change from one kobo to five kobo, in line with ‘Rule 15.29: Pricing Methodology, Rulebook of the Exchange, 2015.’
“Vitafoam Nigeria Plc stock price appreciated above the N5 price level on May 4, 2020 and traded above N5 up till close of business on September 7, 2020. This indicates that Vitafoam Nigeria Plc stock price has traded above N5 in the last six months,” NSE stated.
The stock exchange 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 months within a stock price group’s specified price band to be classified in 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.
