The Nigeria Exchange Limited (NGX), has approved the CWG Plc’s free float compliance extension request for three years (2023- 2026).
The board of directors of the company, in a notice on the Nigerian Exchange, made this known to its shareholders.
Companies listed on NGX are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities.
Free float refers to the shares of a company that can be publicly traded and are not restricted or the number of shares that is available to the public for trading in the secondary market.
The free float requirements for companies listed on the various Boards of NGX include; For Growth Board, a minimum of 10 per cent of the issued and fully paid up shares or the value of its free float is equal to or above N50 million, for entry segment; For Growth Board, a minimum of 15 per cent of the issued and fully paid up shares or the value of its free float is equal to or above N50 million, for standard segment; For ASeM, a minimum of 15 per cent of issued and fully paid up shares or the value of its free float is equal to or above N50 million; For Main Board, a minimum of 20 per cent of the issued and fully paid up shares or the value of its free float is equal to or above N20 billion; For Premium Board, a minimum of 20 per cent of issued and fully paid up shares or the value of its free float is equal to or above N40 billion.
According to the notice, this is to enable the company to comply with NGX’s free float requirements of 20 per cent issued and fully paid share capital or N20 billion free-float market capitalisation 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 stressed.
The company stated that, it remains committed to good corporate governance practices, ensuring that the free float deficiency is cured within the stipulated timeline given by NGX Regulation Limited (NGX RegCo) failing which NGX RegCo may suspend trading in its securities.
CWG is an information and communication technology company in Nigeria offering integrated ICT solutions to commercial enterprises in sub-Saharan Africa.