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LequteMan
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Chellarams Plc face being delisted from the Nigerian Stock Exchange because the company failed to comply with the free float requirement of 20 per cent, which according to the exchange is to ensure that there is an orderly and liquid market in their securities. THISDAY reports.
The listing requirements of the NSE stipulates that for a company to be listed on mainboard of the exchange, 20 per cent of its shares must be made available to the public(free float).
However, despite being listed since 1977, Chellarams Plc has a free float deficiency of 14.80 per cent and according to NSE records, only 5.20 per cent of the company shares are in the hands of the investing public and trading on the exchange.
It was gathered that the NSE gave the company a deadline of December 31, 2014 to comply, which is a day after tomorrow.
"Except Chellarams Plc complies with the provision by December 31, 2014, the NSE may have no other option but to proceed with the delisting process. As you are aware, the NSE now has high level of zero tolerance for violation of post-listing requirements. All companies must adhere to the rules of the game. This is more so now that the NSE is full member of the World Federation of Exchanges (WFE)," an official of the exchange said.
Chellarams Plc has 722.925 million shares issue and closed with a market capitalisation of N2.855 billion last Wednesday.
#Nigeria #THISDAY #NSE
The listing requirements of the NSE stipulates that for a company to be listed on mainboard of the exchange, 20 per cent of its shares must be made available to the public(free float).
However, despite being listed since 1977, Chellarams Plc has a free float deficiency of 14.80 per cent and according to NSE records, only 5.20 per cent of the company shares are in the hands of the investing public and trading on the exchange.
It was gathered that the NSE gave the company a deadline of December 31, 2014 to comply, which is a day after tomorrow.
"Except Chellarams Plc complies with the provision by December 31, 2014, the NSE may have no other option but to proceed with the delisting process. As you are aware, the NSE now has high level of zero tolerance for violation of post-listing requirements. All companies must adhere to the rules of the game. This is more so now that the NSE is full member of the World Federation of Exchanges (WFE)," an official of the exchange said.
Chellarams Plc has 722.925 million shares issue and closed with a market capitalisation of N2.855 billion last Wednesday.
#Nigeria #THISDAY #NSE
