The Group Managing Director of United Bank for Nigeria (UBA), Oliver Alawuba, participated in insider share dealing between December 22 and 30, 2022.
According to trading document obtained by Ripples Nigeria from Nigerian Exchange Limited NGX, Alawuba parted with a total of N22.50 million to acquire three million shares.
The shares were bought at different prices, “1,000,000 shares at NGN7.40 per share, 77, 202 shares at NGN7.50 per share, and 865,647 shares at NGN7.50 per share.
“137,970 shares at NGN7.55 per share, 89,326 shares at NGN7.60 per share, 299,270 shares at NGN7.60 per share and 530,585 shares at NGN7.65 per share.”
Share dealing by an insider is the acquisition of a company’s shares by its executives, their relatives and associates, including employees at the firm.
When persons in the aforementioned role participate in trading the firm’s shares, the company is obligated to inform the Nigerian Exchange Limited and the Securities and Exchange Commission (SEC).
Failure to do so could lead to financial sanction and be viewed as an illegal dealing to profit from inside information not available to the company’s shareholders and the investing public.
Meanwhile, when an executive of a company sells or acquires shares of their firm, it is seen as a roadmap for minority investors in their trading activities.
When an executive sells his or her shares, it could spark fear, triggering a sell off, but when the executive buys, it boost confidence among other shareholders to hold or acquire more.
