Free Float: Transcorp Hotels Gets 3-Year Grace to Comply
By Dipo Olowookere
The National Council of the Nigerian Stock Exchange (NSE) has given Transcorp Hotels Plc till October 2023 to comply with the 20 per cent free float.
The three-year extension is to avert the possible banning of the shares of the company on the exchange’s trading platform because of the violation of one of the listing rules.
Business Post reports that companies trading their stocks on the NSE are required to allow 20 per cent of their shares to be with the investing public.
According to the rules, failure to adhere to this can force the exchange to suspend trading in the equities of the violating company, though this action is usually taken if the said organisation has not shown a commitment on ways to address the issue.
On Thursday, the board of Transcorp Hotels notified the market that it has obtained the favour of the council of the NSE to have till October 2023 to comply with the free float requirements.
“The National Council of the Nigerian Stock Exchange approved the company’s free float compliance extension request of three years (ending October 3, 2023).
“This is to enable the company to comply with the exchange’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,” the hospitality firm said in the notice.
In the disclosure, Transcorp Hotels said it “remains strong and committed to good corporate governance and to delivering value to all its stakeholders.”
It further expressed confidence to “achieve and meet the free float requirements of the Nigerian Stock Exchange within the three years’ timeframe, ending October 3, 2023.”