Oando share price drops as market reacts to SEC’s sanction

• Veteran investor, Gbadebo Olatokunbo, saw it coming

Negative reactions from investors on the Nigerian Stock Exchange greeted the Oando Plc on Monday as they reacted negatively to developments at the company as its share price fell 9.52 per cent to close at N3.80 at the end of Monday trade transactions.

A total of 27.145 million units of the stock valued at N103.269 million were traded by investors in the day. Year-to-date, Oando Plc shares have suffered a decline of 24 per cent.

Market operators and investors in the market were startled by the development in the company as it concerns the outcome of the forensic audit of the company’s activities instituted by the nation’s apex capital market regulator, the Securities and Exchange Commission (SEC).

“Reacting to Oando debacle, shareholder activist and co-founder, Nigeria now “NOBLE” Shareholders Solidarity Association in 1985, Alhaji Gbadebo Olatokunb said: “As a shareholder of Oando, l don’t believe that the company was very clean with most of the reports it had published so far to her shareholders.

“I have been suspecting that some people been playing a bad and very dangerous games with most of the reports & accounts of the company, therefore l am not surprised at all with the result published and the sanction by SEC.

“Oando is two companies in one, it’s an offshore/onshore oil company, yet every year, the annual report and accounts and dividends payments were nothing to commensurate the nature and size of the company.

“Check the performances of other companies in the same sector with that of Oando, then you will appreciate my point of view that Oando is a great disgrace, disappointment and embarrassment to the corporate Nigeria because no multinational company in  its shoe would have performed so badly like the management and board of Oando did, to be candid it was a dent to the Nigeria.

“Though, no shareholder is happy with SEC now with their proposed ban on Pre-Agm and Gifts at AGM, but the truth must be told, the management and board of Oando had taken their shareholders for a very rough ride for too long, before the intervention by SEC and it would serve as deterrent to other companies in the same bad habit”.

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