NGX reopens trading in Zichis shares after volatility review

Trading has resumed in the shares of Zichis Agro-Allied Industries Plc after the Nigerian Exchange Limited (NGX) ended its suspension on the stock.

The halt, which began on February 23, followed a regulatory review by NGX Regulation Limited into an unusually sharp rally in the company’s share price shortly after it entered the market.

Zichis, which debuted on the Growth Board at N1.81 on January 20, experienced a rapid climb to N17.36 within a month, an increase of more than seven-fold. The pace of the rise raised red flags for regulators, particularly around the risk of retail investors being caught in a potential liquidity squeeze.

To address these concerns, trading was paused while the exchange assessed market activity and implemented safeguards aimed at ensuring orderly trading.

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Following the review, the stock returned to the market at an adjusted price of N8.58, significantly lower than its pre-suspension level. The revision reflects corporate actions, including a one-for-one bonus share and a 20 kobo dividend, with investors qualifying as of March 16, 2026.

Activity picked up immediately after the reopening, with the stock gaining close to 10 percent by early afternoon trading on Monday to hover around N9.43 per share.

In a statement issued by NGX and signed by its Head of Issuer Regulation, Mr Godstime Iwenekhai, the exchange said it had completed its investigation and introduced measures to protect market fairness and efficiency.

The exchange added that the suspension was formally lifted with effect from March 23, 2026, allowing normal trading in the company’s shares to continue.

Zichis Agro Allied Industries Plc was listed on the NGX Growth Board on January 20. The company was listed with 1.086 billion shares at N1.81 per share, but it grew by 772.36 percent within weeks, fuelling patronage but also suspicion among market makers.

Market data showed that the company’s stock, which had traded quietly for months at relatively low volumes, suddenly began an aggressive upward climb, drawing the attention of retail investors, analysts and regulators alike. The meteoric rise positioned Zichis among the best-performing equities on the NGX so far this year, but not without controversy.

Zichis Agro Allied Industries Plc, an agribusiness company with interests in oil palm plantation development and processing, announced expansion plans in February, including the acquisition of 2,000 acres of land in Ogun State as part of its medium- to long-term growth strategy. While the company framed the move as a major milestone in its ambition to become a leading player along the oil palm value chain, some market watchers question whether the fundamentals alone justify such a dramatic spike in valuation.