Investors Push for Shares of Ikeja Hotel over Price Appreciation

Enterprise Television-  Investors Push for Shares of Ikeja Hotel over Price Appreciation

After the lifting of suspension on shares of Ikeja hotel Plc on Monday 21, 2018, the shares of the hospitality giant jumped from N1.78 to N1.86 in about three hours, representing 4.5% increase, all to the astonishment of the general public.

Similarly, at the close of transactions on Tuesday and yesterday Wednesday, Ikeja Hotel Plc sustained foothold on the equities sector of the Nigerian Stock Exchange (NSE).

On Tuesday, the stock led 18 others with 9.68 per cent appreciation, to close at N2.04 per share while it gained 9.80 per cent to close at N2.24 per share at the close of Wednesday’s market.

Analysts, operators and investors had expressed optimism that with the level of work done so far by the interim management to unlock the inherent value of its going concern, the company is well positioned for better days ahead.

The stakeholders noted that although the firm has been involved in a boardroom crisis, a development that led the shareholders to remove its Chairman Goodie Ibru, early in 2015, at an Extra-Ordinary General Meeting, the company’s fundamentals are still upbeat.

However, the stakeholders added that now that the board has sorted itself out, with the chairman sacrificing his position by stepping aside for the sake of the company’s longevity, the stock is now set for a quantum leap.

The NSE had on November 10, 2016, suspended trading on the shares of Ikeja Hotels Plc, following the continued dispute among the major shareholders of the company.

According to the NSE, the suspension, which is pursuant to the Provisions of Rule 15.45 of its Rulebook, is to safeguard shareholders of the company as the dispute has negatively impacted the company’s governance structure.

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