Nigeria Exchange Limited (NGX) has approved International Breweries’ free float compliance extension request of two (2) years ending 30 July 2024.
This is contained in a disclosure on approval of free float compliance extension signed by Muyiwa Ayojimi, the company secretary.
According to the company, the development will enable the company to comply with NGX’s free float requirements.
It stated, “The Board of Directors of International Breweries Plc (“the Company”) hereby notify all its esteemed shareholders that the Executive Management of Nigeria Exchange Limited (“NGX”) approved the Company’s free float compliance extension request of two (2) years ending 30 July 2024.
International Breweries Gets NGX’s Approval For Free Float Compliance Extension
“This is to enable the Company to comply with NGX’s free float requirements of 20% issued and fully paid share capital or Twenty Billion Naira free float market capitalization 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’”.
It also noted that the Board and Management of the company remains committed to ensuring that the free float deficiency is cured within the stipulated timeline granted, and to maintaining good corporate governance, while also delivering value to all its stakeholders.
“The Company is positioned to achieve and meet the free float requirements within the two (2) years’ timeframe, ending 30 July 2024 given by NGX,” It noted.
A free-float basically means the number of outstanding shares of a company that is liquid and tradeable on the stock exchange. These are shares that have been dematerialized and exist on the stock exchange for investors to buy or sell.
According to listing rules, stocks quoted on the Nigerian Stock Exchange must have a free float requirement of about 20% of their issued and fully paid-up shares. This provision is the same for companies listed on the Main and Premium Board.