Free Float: NGX RegCo Grants UPDC, Neimeth Pharmaceuticals Two Years Extension
The NGX Regulation Limited (NGX RegCo) has approved UPDC Plc and Neimeth International Pharmaceuticals Plc’s request for an extension of time to achieve the required free float threshold within two years (2024-2026).
Both companies in a separate notification on the Nigerian Exchange Limited (NGX) stated that the extension is to enable them to comply with the Exchange’s free float requirements of 20 per cent issued and fully paid share capital or N20billion free-float market capitalization for companies listed on its Main Board and to ensure that they return to its post-listing
Meeting the free float is in line with Rule 3.1.4 of The Exchange’s Rules Governing Free Float Requirements, which states that “The Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe”.
The Board and majority shareholders of the Company remain committed to good corporate governance practices and will ensure that the free float deficiency of the Company is cured within the stipulated timeline given by NGX RegCo, failing which NGX RegCo may suspend trading in its securities,” Company Secretary, UPDC, Folake Kalaro said in her signed notification sighted by InsideBusiness Online
The acting company secretary, Neimeth International Pharmaceuticals, Chinenye Adekanmbi said the company remains committed to good corporate governance practices and would ensure that the free float deficiency of the company is cured within the stipulated timeline given by the NGX Regco, failing which NGX Regco may suspend trading in its securities.
The pharmaceuticals currently have 4,273,104,608.00 outstanding shares on NGX and trading at N1.87 per share as of February 16, 2024.
On the other hand, UPDC, a real estate development company reported 18,559,969,936.00 and N 1.60 outstanding shares and share price, respectively as of February 16, 2024.
Companies listed on NGX are required to maintain a minimum free float for the set standards under which they are listed to ensure that there is an orderly and liquid market for their securities.
According to the Exchange, “For Growth Board, a minimum of 10 per cent of the issued and fully paid up shares or the value of its free float is equal to or above N50 million, for the entry segment.
“For Growth Board, a minimum of 15 per cent of the issued and fully paid up shares or the value of its free float is equal to or above N50 million, for the standard segment.
“For ASeM, a minimum of 15 per cent of issued and fully paid up shares or the value of its free float is equal to or above N50 million.
“For the Main Board, a minimum of 20 per cent of the issued and fully paid up shares or the value of its free float is equal to or above N20 billion. For Premium Board, a minimum of 20 per cent of issued and fully paid up shares or the value of its free float is equal to or above N40 billion.”
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