Atlas CEO Carl Esprey. The loss-making firm has had a troubled short history since listing on the Nairobi bourse in December 2014. PHOTO | FILE
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The firm said the suspension will continue until it hires a new advisor.
It was not immediately clear whether the suspension also applies to the NSE.
Atlas African Industries Limited was Monday suspended from trading after its nominated advisor (Nomad), Stifel Nicolaus Europe Limited, resigned for undisclosed reasons.
The firm, which is dual-listed on London’s Alternative Investment Market and Nairobi Securities Exchange’s Growth Enterprise Market Segment, said the suspension will continue until it hires a new Nomad.
Among other roles, a Nomad advises its client on their listing obligations including compliance with the Capital Markets (Securities, Public Offers, Listing and Disclosure) Regulations, 2002.
“If a replacement Nomad is not appointed within one month of today’s date, admission of the company’s shares to trading on AIM will be cancelled,” Atlas said in a statement. It was not immediately clear whether the suspension also applies to the NSE.
A single trade of 300 shares at a price of Sh1.05 had gone through a few minutes before the NSE circulated the Atlas announcement at 9:40 am Monday, according to data from the NSE and data vendor Rich Management.
Loss-making Atlas has had a troubled short history since listing on the NSE in December 2014, losing money as it transformed from an oil and gas logistics firm in Kenya to a glass bottles manufacturer in Ethiopia and finally to buying a stake in a Nigerian betting firm.
The company in August invested Sh30 million to acquire a 10 per cent equity in BonanzaWin, a Nigerian gaming company offering a range of “bricks-and-mortar” and online play gaming experiences including sports betting, live casino, slot games, virtual games and football lottery. Last month it invested a further Sh20 million in the betting firm, raising its interest to 13.5 per cent.
Atlas’ share price, currently at Sh1.05 on the NSE, represents a major rout from the listing offer price of Sh11.5. The company raised $5 million (Sh505 million) from Kenyan investors in a private placement ahead of its listing on the Nairobi bourse.
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