NGX Regco Grants CWG’s Free-Float Compliance Extension Request

By Aduragbemi Omiyale

The request made by CWG for an extension for its free float compliance has been granted by the Nigerian Exchange (NGX) Regulation Limited.

Regco is the regulatory arm of the NGX Group Plc. It is saddled with the responsibility of ensuring companies listed on the NGX Limited adhere to listing rules.

For a company to be allowed to trade its stocks on the bourse, it is required to ensure 20 per cent of its shares are in the hands of the investing public, particularly those not on its board.

But for CWG, it falls short of this free float requirement of 20 per cent issued and fully paid share capital or N20 billion of its market capitalisation (total value of its equities).

The board of the organisation sought an extension of three years to meet up with this vital requirement, and it has been granted.

CWG confirmed this development in a regulatory filing on Monday.

“The Board of Directors of CWG Plc hereby notifies all its esteemed shareholders that Nigeria Exchange Limited (NGX) has approved the company’s free float compliance extension request for three years (2023- 2026).

“This is to enable the company to comply with NGX’s free float requirements of 20 per cent issued and fully paid share capital or N20 billion free-float market capitalisation for companies listed on its Main Board and to ensure that the company returns to its post-listing obligations.

“This 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 company’s board and management remain committed to good corporate governance practices, ensuring that the free float deficiency is cured within the stipulated timeline given by NGX Regulation Limited (NGX RegCo), failing which NGX RegCo may suspend trading in its securities,” the notice read.