The Nigerian Exchange (NGX) Limited has upgraded the shares of BOC Gases Plc and placed it on the medium-priced stock level from the previous low-priced stock category.
The reclassification became necessary after its equity value has traded at the current group for a period of four of its most recent six months.
The NGX, in a release, said, the reclassification of B.O.C Gases from the low-priced stock group to the medium-priced stock Group is in line with the NGX’s pricing methodology framework.
Equity securities of quoted companies on the Exchange (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.
According to the Exchange, a review of B.O.C Gases stock price and trade activities over the most recent six-month period provides the basis for reclassifying the security.
“This reclassification also necessitates the attendant change in the tick size change from N0.01 kobo to N0.05 kobo, in line with Rule of Pricing Methodology, Rulebook of the Exchange, 2015. B.O.C Gases stock price appreciated above the N5 price level on November 16, 2020 and traded above N5 up till close of business on March 17, 2021.
“This indicates that B.O.C Gases stock price has traded above N5 in at least four months out of the last six months. Resultantly, B.O.C Gases has been reclassified from the Low-Priced Stock Group to the Medium-Priced Stock Group with effect from June 16, 2021,” it pointed out.