Dipo Olowookere
By Dipo Olowookere
The managements of Lafarge Africa Plc, Cement Company of Northern Nigeria (CCNN) Plc and seven other publicly quoted companies have commenced discussions with the Nigerian Stock Exchange (NSE) on ways to meet their free float deficiencies, Business Post has learned.
The other firms in talks with the NSE on this issue are Aluminium Extrusion, Union Dicon Salt, Notore Chemical Industries, Medview Airline, Omoluabi Mortgage Bank, Ellah Lakes and Austin Laz & Company.
One of the listing rules stipulates that companies are required to maintain a minimum free float for the set standards under which they were admitted on the local bourse in order to ensure that there is an orderly and liquid market for their securities.
While the free float requirement for companies on the ASEM Board is a minimum of 15 percent of issued and fully paid up shares, firms on the Main Board must maintain a minimum of 20 percent of the issued and fully paid up shares.
Also, companies listed on the Premium Board are 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 NSE receives their application to list.
Business Post gathered that the nine companies above are making efforts to seek waivers from the Regulation Committee of the National Council of the NSE (RegCom) and as well stating how they wish to comply with the rules.
According to a document seen by Business Post at the weekend, the NSE confirmed that the aforementioned companies were currently being engaged on how to ensure they have the issue resolved by giving a timeframe to meet the listings requirement.
If their plans are approved, they would be required to also provide quarterly disclosure reports to the NSE detailing their level of implementation of the compliance plans.
As at the time the document was sighted, Lafarge Africa had 16.13 percent of free float, CCNN had 2.97 percent.
Aluminium Extrusion had 17.99 percent, Union Dicon Salt had 18 percent, Notore Chemical Industries had 10.02 percent, Medview Airline had 14.16 percent, Omoluabi Mortgage Bank had 14.16 percent, Ellah Lakes had 13.83 percent, while Austin Laz & Company had 19.36 percent.
