Union Bank, AG Leventis free float deficiency deadline ends Q1, Q2

The free float grace given by the Nigerian Stock Exchange (NSE) to Union Bank Nigeria PLC and A.G Leventis Plc will end in the first and second quarters 2017.
While that of A.G Leventis will end in the first quarter ending March 31, 2017, tat of Union Bank will also expire at the end of the second quarter, June 30th 2017.
Daily Times Nigeria recalls that, Chellerams Plc listed in the main board of the NSE with a free float of 14.87 and a tag of below listing standard (BLS) recently migrated to ASeM board.
Chellerams had a free float deficiency of 5.13 per cent and was given a time grace of 08 July 2016 to comply with the needed 20 per cent for companies in the main board, due to the company’s inability to meet up with the requirement on the free float, its board voted for migration to ASeM board and wrote to the NSE for authorization, the NSE endorsed the application on February 20th 2017.
Companies listed on The Exchange 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.
The free float requirement for companies on the ASEM Board is 15 per cent of market capitalization, Main Board is 20 per cent of market capitalization while companies on the Premium Board is 20 per cent of market capitalization or above N40 billion on the date The Exchange receives the Issuer’s application to list.
The Nigerian Stock in compliance with its full disclosure standard as at the close of trade on February 28th 2017, listed both Union bank Nigeria Plc and A.G Leventis Plc among the companies in schedule 7 of X-compliance schedule that have free float deficiencies.
The Exchange further revealed that the companies including Union Bank and A.G Leventis have applied for waivers from the Quotations Committee of Management, that have also provided compliance plans with tentative timelines to support their requests.
The NSE under the X-Compliance schedule noted that the companies having applied for waivers, the Quotations Committee of Management considered and approved an extended timeframe for the companies to regain compliance with the listing requirement.
It however noted that the companies are however required to also provide quarterly disclosure reports to The Exchange detailing their level of implementation of the compliance requirements.
Meanwhile, Union Bank with a free float of 14.94 per cent, has a deficiency of 5.6 per cent to deliver to the NSE on or before the end of 30th June 2017. However, the company may apply for further extension, which the Exchange may or may not endorse, as Daily Times Nigeria gathered.
A.G Leventis has a free float of 11.64 per cent and a deficiency of 3.46 per cent for ASeM board and 8.46 per cent deficiency for main board.