Livingtrust Mortgage Bank Plc (NGX: LIVINGTRUST) on Wednesday said that NGX Regulation Limited has approved its compliance plan to ensure that the company meets the free float requirement for listed companies on the Exchange.
The bank also said that the compliance period was also extended by two years, which will end on August 20, 2021, adding that it has commenced the implementation of the approved compliance plan to address the free float deficiency within the approved period.
The bank disclosed this in a corporate action notification published on the Nigerian Exchange.
According to the document signed by Timothy Gbadeyan, Company Secretary, the majority shareholders of the company have pledged to make 750,000,000 ordinary shares of the company available for trading to members of the public.
Livingtrust Mortgage Bank said it will hold a Facts Behind the Figure Session and Earnings Call, among other activities to showcase the company’s performances.
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The bank acknowledged that the Exchange may suspend trading in its securities if it does not achieve the required threshold for free float within the two years extension period, in line with Rule 3.1.4 of the Rules Governing Requirements for Companies Listed on the Exchange (Free Float Rules).
Living Trust Mortgage Bank Plc has 5,000,000,000 outstanding shares and a market capitalization of N3.35 billion and is listed on the Growth Board of the Exchange.
The equity price stands at N0.67 per share on the Nigerian Exchange. The last trading activity on the shares was on May 14, 2021, with a volume of just 1,100 units.
Other listed companies that have fallen below the free float requirement and have also received two years grace period include UPDC Plc which has until August 10, 2023; Prestige Assurance Plc with a three-year grace period expiring on August 20, 2024.
Both companies listed on the Main Board of the Exchange have also said they are working to comply with the requirement within the approved extension periods.
The Exchange’s free float requirement is 20% of issued share capital or N20 Billion free float value for companies listed on the Exchange’s Main Board, according to the rules governing free float requirements for issuers listed on the Nigerian Exchange
For companies listed on the Standard segment of the Growth Board, the free float requirement is 15% of the issued share capital or N50 million free float value.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
