Tourist Company of Nigeria Plc has
indicated interest of voluntary delisting from the Nigerian Stock Exchange
(NSE) over free float deficiency.
Free float refers to the number of
shares a quoted company has as outstanding and available to be traded on the
floor of exchange.
The availability of free float gives companies
admission to new and large capital through which the general public can invest
in the company thus making capital raising easy.
Findings by Nigerian NewsDirect
show that the tourist company had 2.2 billion shares outstanding while its
market share price closed on June 12, 2015 at N3.51.
As stated in the NSE latest
X-Compliance Report, companies listed on The Exchange must 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 in their securities.
The report stated that “The free float
requirement for companies listed on the Main Board is 20per cent and 15 per
cent for Alternative Securities Exchange Market (ASEM) companies.”
Other companies with free float deficiency
include Dangote Cement Plc which is the most capitalized stock listed on the
Exchange is given till October 26, 2016 to comply.
The leading cement manufacturing
company had 9.07 per cent of free float while that of Union Bank of Nigeria
with 14.94 per cent is expected to comply before June 30, 2017.
Transcorp Hotels Plc with 10.80 per
cent is expected to comply before December 31, 2015.
Great Nigerian Insurance Plc (16
per cent) and Chellerams Plc (14.87 per cent) are expected to comply before
July next year.
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