Dipo Olowookere
By Dipo Olowookere
One of the leading fertiliser and agro-allied companies in Africa, Notore Chemical Industries Plc, is presently battling with free float deficiency of its shares listed on the Nigerian Stock Exchange (NSE), Business Post can authoritatively report.
Notore, which has its headquarters in Port Harcourt, Rivers State, started trading its equities on the NSE in 2018.
This was done through the introduction of 1.61 billion units of shares of the firm worth N100.75 billion at N62.50k per share on the stock exchange.
On Saturday, Business Post confirmed from a regulatory document it obtained that Notore has a free float deficiency of 0.11 percent, far below the 20 percent standard it should have.
Companies listed on the NSE 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.
This newspaper gathered that 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.
Also, companies listed on the Premium Board of the NSE 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 stock exchange receives the issuer’s application to list.
Notore, a firm listed in the industrial goods sector, is on the main board of the NSE with a market capitalisation of N100.75 billion and outstanding shares of 1.612 billion trading at N62.50k per unit.
As a result of its free float deficiency, Notore presently has BLS (meaning Below Listing Standard) accompanying its counter on the NSE.
It was reliably gathered that if the company does not make efforts to address its present situation, the management of the NSE might have to sanction the firm.
