NGX Suspends Trading In Notore Shares Ahead Of Delisting

The Nigerian Exchange Limited (NGX) has suspended trading in the shares of Notore Chemical Industries Plc, effective June 11, 2025, in preparation for the company’s planned delisting from the stock market.

NGX, said the suspension is necessary to prevent trading in the shares of the Company in preparation for the delisting of the securities of the Company in line with the approval obtained from NGX.

Notore Chemical Industries had, on November 21, 2024, notified the NGX of its intention to delist, citing strategic reasons. The company had also announced that Kwararafa Africa Limited made an offer to acquire the shares held by minority shareholders through a scheme of arrangement.

On June 3, 2025, the NGX granted approval for the voluntary delisting of Notore’s 4.030 billion ordinary shares from its official daily list. The move will reduce the NGX’s market capitalisation by approximately N252 billion, making it one of the more significant exits by market value in recent years.

At a Court-ordered Meeting held on March 27, 2025, shareholders of Notore approved the Scheme, including the compensation package of N62.60 per share for each minority shareholder. Upon implementation, legal and beneficial ownership of the minority-held shares will be transferred to Kwararafa Africa Limited, completing the transition to a privately held entity.

Incorporated in 2005, Notore Chemical Industries Plc was established to manufacture nitrogenous fertilizers and related agricultural products aimed at improving soil fertility. The company operates a 500,000 metric tonne Urea Plant in Onne, Rivers State, which began commercial production in 2010 after full rehabilitation.

The company is a subsidiary of Notore Chemical Industries (Mauritius) Limited and has positioned itself as a key supplier of fertilizers in Nigeria and West Africa.

While the company played a strategic role in Nigeria’s agricultural and industrial policy landscape, its recent financial performance revealed underlying challenges.

According to unaudited interim financials for the 12-month period ended December 31, 2024, Group revenue fell to N751.36 million, compared to N21.55 billion in 2023. Net finance costs soared from N91.14 billion in 2023 to N161.06 billion in 2024.

This culminated in a widened Group loss of N191.21 billion for 2024, up from N114.25 billion the previous year, signaling persistent cost pressures and financial strain.