NGX RegCo, the regulatory arm of the Nigerian Exchange Group, has approved the request of Neimeth International Pharmaceuticals Plc for an extension of the time to achieve the free float threshold.
In a corporate statement filed with the Nigerian Exchange Limited on Thursday, the firm said that the extension would enable it to comply with the NGX’s free float requirements between 2024 and 2026.
Free float is the number of shares that a listed company has outstanding and available for trading on The Exchange.
It includes all shares held by the investing public and excludes shares held directly or indirectly by promoters, directors and their close relatives.
According to the NGX rule book, for any firm seeking to list on the Main Board, its free float must be 20 per cent of its issued share capital made available to the public and held by not less than 300 shareholders; or be valued at N20bn or more, or any value prescribed by the exchange from time to time.
In the statement, Neimeth said that the extension is “To enable the company to comply with Nigeria Exchange Limited’s free float requirements of 20 per cent issued and fully paid share capital or N20bn free-float market capitalisation for companies listed on its Main Board and to ensure that the Company returns to its post-listing obligations.”
It added that the firm “remained committed to good corporate governance practices and will ensure that the free float deficiency of the Company is cured within the stipulated timeline given by NGX RegCo, failing which NGX RegCo may suspend trading in its securities”.
As of the latest X-Compliance report of the NGX RegCo, 17 companies listed on the exchange were not compliant with their free float requirement.
The report showed that Neimeth’s compliance was at 17.22 per cent valued at N1.397bn.
Its new compliance due date is February 6, 2026.a
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