The market value of BOC Gases Nigeria Limited has crashed by 18.9 percent just one week after the company approved its Audited Financial Statements for the year ending December 31, 2020.
BOC Gases adopted the financial statements at its Annual General Meeting held on June 24 and that decision appeared to have chased shareholders out of the company.
Ripples Nigeria’s analysis of BOC Gases stock performance this week showed that shareholders had lost N832.48 million in five days, from June 28 to July 2.
This followed the crash in the market capitalisation to N3.55 billion on Friday.
This was lower than the N4.39 billion the company reportedly worth before the opening of trading on the floor of the Nigerian Stock Exchange (NSE) last Monday.
The crash was triggered by sell-off among shareholders and undervaluation of BOC Gases stock by investors.
Both factors had wiped N2 out of the firm’s share price which dropped from N10.55kobo to N8.55kobo between Monday and Friday.
The drop in BOC Gases market value came at a period the company is changing its brand name to Industrial and Medical Gases Nigeria Plc.
This development has failed to boost investors’ confidence in the company.
The promise of a dividend of N0.50kobo per share – for the period ended December 31, 2020 – had also failed to convince investors on the viability of BOC Gases stock in the Nigerian capital market