FREE FLOAT OF SHARES: 18 companies flaw Stock Exchange post listing requirements - Vanguard News Nigeria

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FREE FLOAT OF SHARES: 18 companies flaw Stock Exchange post listing requirements vanguardngr.com vanguardnews

The companies that have free float deficiencies are: AG Leventis Plc, Capital Hotel Plc, Caverton Offshore Support Group Plc, Champion Breweries Plc, Ekocorp Plc, E-Tranzact International Plc, Infinity Trust Mortgage Plc, Interlinked Technology Plc, The Tourist Company of Nigeria Plc.

According to the NSE some companies that have free float deficiencies have applied for waivers from the Quotations Committee of Management specifically provided compliance plans with tentative timelines to support their requests. Others are: The Tourist Company of Nigeria Plc with 3.58 free float of shares and deficiency of 16.42 percent or 10.3 billion shares with no compliance due date ; Transcorp Hotel has 6.00 percent free float of shares and deficiency of 14.00 percent or 17.7 billion shares with due date of May 18, 2020. Union Bank has 14.94 percent free float of shares and 5.06 percent deficiency or 10.1 billion shares with compliance due date of May 18, 2020; Portland Paints has 14.

In his own remark, Managing Director/CEO, Sofunix Investment and Communications Limited and a Chartered Stock Broker, Mr. Sola Oni said: “The NSE requires quoted companies to have a minimum 20 percent of its paid up share capital as free float or at least the value of its free float should be equal to forty billion Naira on the day the company is admitted to the Daily Official List of the Exchange.

Reacting, the spokesperson for Independent Shareholders Association of Nigeria, ISAN, Mr. Moses Igbrude said: “When market regulators fail or choose to bend the laws or their regulations to favour some players this scenario will be the case.

 

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