The Nigerian Exchange Limited (NGX) has approved the request by NPF Microfinance Bank Plc to extend its free float compliance by one year ending 1st December 2023.
The approval is contained in a statement to the shareholders signed by the Company Secretary Mrs O.J. Idemudia.
The details: Nairametrics understands that the extension would enable the company to comply with NGX’s free float requirements of 20% issued and fully paid share capital or N20 billion free-float market capitalisation.
- “The Bank is positioned to achieve and meet the free float requirements within the one-year timeframe ending 1st December 2023 given by NGX Regulation Limited (NGX RegCo) failing which NGX RegCo may suspend trading in its securities,” the statement.
The rules: Companies listed on the Main Board of the NGX are required to comply with this requirement as part of the listing rules of the NGX.
Specifically, rule 3.1.4 of the Exchange’s rules governing free float requirements 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.”