Inside Zichis’ one-month rally of over 800% that triggered NGX suspension

The Nigerian Exchange (NGX) suspended trading in Zichis Agro-Allied Industries Plc after its share price surged at an alarming pace, raising concerns about market integrity. The suspension was issued under Rule 7.0 of the NGX Rules on Suspension of Trading in Listed Securities, which grants the exchange authority to halt trading when investor protection is at risk. A demand-supply imbalance from day one Zichis is listed on the NGX Growth Board — the exchange's segment for small and medium enterprises — with a total issued share capital of 600 million shares. Growth Board companies are required to make at least 15% of their shares available to the public as free float. Zichis comfortably exceeded this threshold, with roughly 150 million shares — or 25% — available for public trading. Yet that was nowhere near enough to meet demand. Stockbroker Aruna Kebira revealed that buy orders totalling over 800 million shares were chasing a pool of just 600 million issued shares, creating relentless upward pressure on the price from the very first trading session. "The stock might just be trading within a circuit, not enough to go outside," Kebira explained. Sources familiar with the listing confirmed that Zichis met all NGX free float requirements — a mandatory condition for listing approval. However, one source alleged that share access was effectively limited to a small circle of stockbrokers who had been part of the original offer, creating an artificial scarcity that kept pushing the price higher. Early shareholders compounded the problem by holding onto their stakes rather than selling, further squeezing supply. What the trading records show In suspending the stock, the NGX pointed to irregular trading patterns and signalled that a formal investigation was underway. Market data from the opening sessions reportedly showed that cumulative bids regularly exceeded the entire 600 million share count. "The situation was not driven by any single brokerage firm or investor, but rather by broad market interest in the stock," said one insider. Kebira was blunt about his own experience: "I was number one in the queue for four consecutive days to buy Zichis, and I didn't get it." Part of the difficulty may stem from a practice known as cross-priority trading, where brokerage firms give their own internal clients first access to shares before fulfilling external orders. Regulators are now reviewing trading records and documentation across multiple brokerage firms. Penalties on the table The NGX Disciplinary Tribunal, which handles ethical breaches by stockbrokers, warned that consequences could be severe. Tajudeen Olayinka, CEO of Wyoming Capital and Partners, noted that punishments can include permanent removal from the capital market and potential prosecution through the EFCC and the courts. "The panel is an integral part of market structure, vested with powers to protect the integrity of the market," he said, adding that a tribunal sitting is expected soon. Both the NGX and the Securities and Exchange Commission (SEC) have declined to comment on the specifics of the investigation, stating that findings will be published once the review is complete. Strong fundamentals beneath the frenzy Despite the trading suspension, Zichis released its audited results for the year ended December 31, 2025, painting a picture of genuine business momentum. Revenue more than doubled, rising 133.79% to ₦675.6 million from ₦288.9 million the previous year. Profit before tax jumped to ₦364.21 million from ₦69.93 million, while profit after tax reached ₦326 million. Total assets grew to ₦1.22 billion, with ₦741.3 million tied up in property, plant and equipment. The company also proposed a dividend of 20 kobo per share — four times last year's 5 kobo payout — and announced plans for a one-for-one bonus share issue, subject to shareholder approval. How it all started Zichis debuted at an attractive entry price of ₦1.81 per share, drawing heavy investor interest from the outset. Within its first week, bids reached 280 million units, and volume in a single session surged to nearly 48.8 million shares. By mid-February, the stock had climbed more than 157% month-to-date to around ₦10.80, fuelled by its strong financials and a disclosed plan to acquire roughly 2,000 acres of land in Ogun State for oil-palm production expansion. The combination of credible growth fundamentals, a cheap listing price, and a severely limited share supply sent the stock soaring — until regulators stepped in.