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

The suspension of trading in the shares of Zichis Agro-Allied Industries Plc by the Nigerian Exchange Limited (NGX) has now entered its third week, as regulators continue investigating the company’s extraordinary 800% price rally within one month of listing.

Zichis was admitted to trading on the NGX Growth Board on January 20, 2026, through a listing by introduction at N1.81 per share. Anchoria Asset Management Limited was the lead stockbroking house that facilitated the listing.

By February 20, the share price had climbed to N17.36, representing a surge of more than 800% in barely four weeks.

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This rapid capital appreciation triggered regulatory concern, prompting the NGX to suspend trading in the stock, citing Rule 7.0 of the NGX Rules on Suspension of Trading in Listed Securities.

This rule allows the exchange to halt trading in the interest of market integrity and investor protection.

What the demand–supply data reveal:

Zichis Agro-Allied Industries Plc is listed on the NGX Growth Board with a paid-up share capital of 600 million shares.

Growth Board issuers (NGX name for SMEs) are required to make available to the trading public a minimum of 15% of total issued shares, otherwise called the free float shares.

It was learnt that Zichis’ free float shares stood at about 150 million, representing 25% (clearly above 15% minimum).

• Stockbroker Aruna Kebira said more than 800 million shares in buy orders were chasing roughly 600 million issued shares, creating sustained upward pressure on the stock from the first day of trading.
• “The stock might just be trading within a circuit, not enough to go outside. That is what I would call it,” Kebira said.
• Sources familiar with the transaction confirmed that Zichis met the NGX free float requirement at the time of listing. It was pointed out that compliance with this requirement was a necessary condition for NGX to approve the listing.
• Another source alleged that the trade was limited to those few within the circuit of stockbrokers to whom the offer was made. That created a scarcity, and the price of Zichis continued the upward trend.

Several market operators also noted that early shareholders appeared reluctant to sell their holdings, which intensified the scarcity of tradable shares and helped push prices upward daily until the exchange intervened.

**More insights **

In suspending Zichis, NGX cited irregular trading patterns, suggesting a possibility of infractions. Accounts from market participants indicate that access to available shares was extremely limited during the early days of trading.

• _“The irregular trading patterns cited by the NGX are being investigated. The matter does not really concern the Issuer but the traders who are being investigated for alleged contravention,” said Mr. David Adonri, CEO of Highcap Securities Limited. _

However, inside sources explained that market data from the first few trading sessions indicated that cumulative bids often exceeded the total issued shares, with investors collectively placing orders far above the 600 million shares available.

• _“This naturally created strong buying pressure and limited availability in the market. The situation was not driven by any single brokerage firm or investor but rather by broad market interest in the stock,” said an insider stockbroker. _

Our source confirmed that regulators are reviewing documentation and trading records across several brokerage firms.

• _“I was number one in the queue for four consecutive days to buy Zichis, and I didn’t get it,” Kebira also disclosed.  _
• _“If you, as a dealing member house that is selling, any member of your house that has an account with your house may just be the person you have to consider first. That is top of your cross priority,” Kebira explained. _

This cross-priority trading structure, which allows brokerage firms to match buy and sell orders within their internal client base before executing them externally, may have contributed to the difficulty external buyers faced in obtaining shares.

Disciplinary implications

The Disciplinary Tribunal, which investigates ethical breaches by stockbrokers and enforces punishments, told Nairametrics that “the weight of any infraction determines the penalties which are always very stringent.”

• _“This may include removal from the capital market ecosystem and possible jail term through EFCC and the judicial system,” said Tajudeen Olayinka, CEO of Wyoming Caspital and Partners. _
• _“The panel is an integral part of market structure, vested with powers to protect the integrity of the market. The panel sat two weeks ago, and another sitting will come up very soon,” he said. _
• _“If a stock passes a certain level of increase in capital appreciation within a short period, the exchange should dig in immediately,” said Chief Blakey Ijezie, founder of I & I Investments Limited, as well as Okwudili Ijezie & Co (Chartered Accountants). _
• _However, “There’s always an opportunity for a fair hearing,” as Olayinka stated. _

Both the NGX and the Securities and Exchange Commission (SEC) have declined to disclose details of the ongoing investigation, noting that the findings will be made public once the review process is completed.

**Get up to speed: **

While trading remains suspended, the company has released its audited financial results for the year ended December 31, 2025, showing significant growth in its operations.

• Revenue rose by 133.79% to N675.6 million from N288.9 million recorded in 2024.
• Profit before tax increased to N364.21 million from N69.93 million, while profit after tax climbed to N326 million.
• Gross profit reached N462.8 million compared with N135.5 million in the previous year.
• Total assets expanded to N1.22 billion, with property, plant and equipment accounting for N741.3 million.

The company also proposed a dividend of 20 kobo per share, higher than the 5 kobo paid the previous year, and announced plans for a one-for-one bonus share issue subject to shareholder approval.

**What you should know **

The shares of Zichis became one of the most sought-after new listings on the NGX owing to the cheap listing price of N1.81 per share, and an outlook of its growth potential.

• The stock continued to record heavy demand and bids of up to 280 million units within its first week, while volumes also surged to about 48.8 million shares in a single session.
• By February, the rally intensified while the share price climbed more than 157% month-to-date to around N10.80 as of February 14, supported by strong revenue and profit growth after releasing its financials.
• The company’s disclosure of plans to acquire about 2,000 acres of land in Ogun State to strengthen its oil-palm production and deepen its presence in Nigeria’s agricultural value chain further boosted market performance.

These factors, coupled with its lingering scarcity in the marketplace, combined to trigger keen investor interest in the stock, lifting the price beyond the moon in just one month.