By Dipo Olowookere
In order to resolve its free float deficiency on the Nigerian Stock Exchange (NSE), the board of Medview Airline Plc has concluded plans to meet with its stockbroker.
Business Post gathered that this is to enable the airline operator have consultations with its brokerage company on ways to meet up with the listing requirement.
If the issue is not sorted out with the stock exchange, Medview Airline could have its shares delisted on the trading platform of the nation’s bourse, a development the shareholders may not be happy about.
On Wednesday, July 31, 2019, the board of the firm held a meeting, where it was decided that this step should be urgently taken to avert trouble.
In a statement issued by Medview Airline, it was disclosed that the board resolved that the company’s stockbroker should be approached for “professional advice on the free float deficiency.”
According to the NSE, Medview Airline has a 14.16 percent free float deficiency, but the board is currently having talks with the stock exchange on how to meet up.
Business Post reports that companies listed on the exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities.
The free float requirement for companies on the ASEM Board is a minimum of 15 percent of issued and fully paid up shares while that of the Main Board is a minimum of 20 percent of the issued and fully paid up shares.
Companies listed on the Premium Board are also required to have a free float of a minimum of 20 percent of issued and fully paid up shares or the value of its free float is equal to or above N40 billion on the date the exchange receives the issuer’s application to list.
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