How NGX Director, Farouk Umar Divested 2.53 Million Shares From Newly Demutualised Entity In Four Days
Umar Farouk, a non- executive director of the Nigerian Exchange Limited has cashed out through the divestment of 2.53 million shares owned on the Nigerian Exchange Group.
Farouk between November 2, to November 5, 2021 sold the shares which were valued at N48.8m, an insider dealing analysed from the NGX Ltd revealed.
The NGX Group on October 15, listed 1,964,115,918 ordinary shares on the Nigerian Exchange Limited’s following the demutualisation of the Nigerian Stock Exchange.
The shares were listed at N16.15 per share by introduction, which implies that the company is not raising capital through an Initial Public Offer immediately.
Umar was one of the directors that acquired millions of shares units at the NGX Group at the N16.15 listing price per share.
He was a member of the Boards of Ashaka Cement Plc, Union Homes Savings and Loans Plc , CCNN Plc ,1004 Estates Limited and NAHCO Plc.
Umar currently serves as a Director on the board of Greenwich Merchant Bank, and chairs the Board of Governors, Pearls Award Nigeria.
The director began the sale of his shares just 18 days after the shares were listed on the NGX Limited Board.
He sold 800,000 units of NGX Group shares at N20 a unit on November 2, 2021, at the Nigerian Exchange Limited (NGX) trading floor in Lagos.
Details of the transaction revealed that the director sold shares worth N16m.
On November 4, Umar also sold 900,000 units of shares at N18.88, an equivalent of N16.99m.
A company related to Umar, Milestone Capital Management Limited, on the same date sold 700,000 units at N19.25. The transaction is worth N13.5m.
The company is a vehicle used by the director to acquire shares from the NGX.
On November 8, Umar also sold 26,000 units of shares from the NGX through Milestone Capital Management Limited.
Details of the deal revealed that the non-executive director bought 26,000 units of shares at N18.55. The shares were worth N482,300.
On the same day, November 5, Umar sold additional 99,900 shares at N17.85 and another 100 shares at N17.90.
The 100,000 units were sold at an aggregate price of N17.85 which is worth N1.79m.