The MRS Oil Nigeria Plc has revealed intention to voluntarily de-list its equities from the Nigerian Exchange Limited (NGX) due to a desire to have more business flexibility and the cost savings arising from not holding a public listing.
The choice was voted into effect by stakeholders at an Extraordinary General Meeting (EGM) held on June 25, 2024.
The company’s delisting move is coming from a record-breaking year of 2024 finances.
The company’s revenue in MRS Oil increased by 71.2% to reach N312.2 billion, while profit after tax grew 62.2% each year to reach N6.49 billion.
This growth was largely driven by increasing consumer demand, particularly following its high-profile purchase of refined petroleum products from the Dangote Refinery.
The company stated that these products have gained popularity among consumers looking for fuel efficiency.
Even with the increase in revenue, MRS Oil acknowledged that the full deregulation of Premium Motor Spirit (PMS) had an impact on the increase in fuel price, which negatively affected sales volume.
However, the overall rise in revenue sufficiently compensated for this to ensure ongoing profitability.
Once delisted, MRS Oil will transfer its shares to the NASD OTC Securities Exchange, an investors’ platform for trading off-list stocks.
The company ensured stakeholders that it remains committed to growth and disclosure of finances despite departing the NGX.
During the transition, MRS Oil will offer shareholders a buyback and implement a share capital reduction program.
This will allow investors who do not wish to remain as part of the company after delisting to leave.
The buyback claim period will be between April 4 to July 4, 2025. Those who do not opt for the buyout option within this period will automatically have their shares transferred to the NASD platform.
MRS Oil has promised that all regulatory clearances from the Securities and Exchange Commission (SEC) and NGX will be obtained prior to delisting.
The company believes that in withdrawing from the public markets, it can have more focus on long-term growth strategies with less constraint because of listing requirements.
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