Ikeja Hotel Plunges Amidst Plan to Cancel Bonus, Rights Issue
Ikeja Hotel Plc ended trading sessions on the Nigerian Exchange (NGX) 12% cheaper than its opening market price. The hospitality company’s reduced market value happened following disengagement by some investors in an effort to realign their portfolios.
Huge shares of the company were offloaded in the equity market on Friday. The usual volume that exchange hands in the market plunged Ikeja Hotel share price lower by 9.15%.
The have mild selloffs but the major knocked down came on Friday. The hospitality company market valuation dropped to N19.263 billion on Friday with share price closing at N6.90 on the Nigerian Exchange from N7.9 at the beginning of the week.
At the closing price of N6.95, Ikeja is trading at about 32% below 52 week high. The hospitality company market price had surged to N10.2 before the market corrections on overvalued stocks.
Ikeja Hotel Plc is still trading significantly above its 52 week low. The stock had hit the bottom of its valuation curve at N2.25 per share with the last 12 months.
Plans to Cancel Shares, Pay Dividend
In a statement, Ikeja Hotel Plc told the Nigerian Exchange about plan to hold annual general meeting on July 30, 2024. The company revealed plan to seek shareholders’ approval to cancels the previously approved bonus issue of 1 share for every 3 shares held in the Company offered to investors on Register of Members as at July 4, 2023.
Ikeja Hotel is also seeking to obtain approval for the cancellation of the previously approved rights issue of 1,133,888,945 ordinary shares of 50 kobo each at N2 per share.
Subject to shareholders approval, the board said a dividend of 7.5 kobo per share will be paid to shareholders whose names appear in the Register of Members as at the close of business on Friday, July 5, 2024. # Ikeja Hotel Plunges after Plan to Cancel Bonus, Rights Issue. #Ikeja Hotel Plunges Amidst Plan to Cancel Bonus, Rights Issue
