Nigerian Exchange Limited (NGX) has approved International Breweries Plc’s free float compliance extension request of two (2) years ending 30 July 2024.
This was contained in a approval notification signed by the company secretary, Muyiwa Ayojimi.
International Breweries said the approval will enable it 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.”
Free float basically means the outstanding shares of a company that are readily available for trading in the stock market.
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According to its rules, the Nigerian Exchange could suspend trading in the securities of a company that does not achieve the required free float within the stipulated period.
The notice issued International Breweries read, “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.
“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”.
“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 maintain 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.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
