Nairobi Securities Exchange-listed Atlas African Industries says it is doubtful of a return to the London Stock Exchange where it was suspended on October 17 following the resignation of its nominated adviser (Nomad).
The company also halted trading on the NSE’s Growth Enterprise Market Segment (GEMS) the next day, making the stock illiquid for existing and prospective shareholders.
Atlas’ suspension was to last until it hired a new Nomad but the company says it is uncertain the appointment will be done, adding that it is looking at listing at another exchange other than the London Alternative Investment Market (AIM).
Among other roles, a Nomad advises its clients on their listing obligations including compliance with the Capital Markets (Securities) (Public Offers, Listing and Disclosure) Regulations, 2002.
Atlas said its Nomad, Stifel Nicolaus Europe Limited, resigned because its specialty in the oil and gas industry did not match the company’s current principal activity of sports betting.
“We cannot confirm that we will retain our AIM listing following this date,” the company wrote to shareholders on Friday, adding that it remains committed to a London-based listing in the short term.
“Specifically, shareholders should take note that we have consulted with a number of corporate advisers regarding alternative options to an AIM listing; we are carefully considering these with a view to ensuring shareholders’ long term interests are protected.”
Atlas is unlikely to qualify for listing on the LSE’s Main Market, leaving it with the option of seeking a spot on Euronext London which is part of the pan-European Euronext bourse.
The LSE’s Main Market is reserved for larger, more established companies and is home to some of the world’s largest and best known corporations.
Atlas says it will maintain its Kenyan listing as it seeks to rejoin the LSE’s AIM market in the short term with a view to finding an alternative bourse in the long run.
“In the event of cancellation of admission of the company’s shares to trading on AIM, the company will continue to be subject to the applicable provisions of Guernsey law and the rules applicable to GEMS,” Atlas said.
The company added that it would continue to hold meetings and post information on its website regularly, noting that it would not be mandatory to include all corporate developments as required by AIM rules.
The loss-making Atlas has had a troubled short history since listing on the NSE in December 2014.
Credit: Business Daily