Chellarams to migrate to ASeM board

Chellarams Plc has obtained the approval of Nigerian Stock Exchange (NSE) to migrate from the Main Board to the ASeM Board of NSE.
Chellarams announced this at the weekend in a regulatory filing with the Exchange

“Chellarams Plc through its Stockbroker filed an application for migration to the ASeM Board as a result of the company’s inability to meet the free float requirements of the Main Board,” the company said in an issuer’s announcement to the Exchange.

The NSE requires a free float of 20 percent for companies listed on the Main Board, but companies listed on the Alternative Securities Market (ASeM) are required to hold a free float of 15 percent.

However, Chellarams Plc had applied to migrate the ASeM Board following the company’s 14.87 percent free float deficiency.
The effective date for the migration was Monday, 20 March 2017.

“All other information relating to the company remains unchanged,” Chellarams added.
A Free-float represents the portion of shares of a company that are in the hands of public investors as opposed to locked-in stock held by promoters, company officers, controlling-interest investors, or government.

The free float helps to better calculate the market capitalisation of companies because it provides a more accurate reflection (than entire market capitalisation) of what public investors consider the company to be worth.

Chellarams which is one of twelve other companies listed on the NSE with free float deficiencies has been tagged BLS which means Below Listing Standards, for continuing operations with deficiencies regarding Continuing Listing Standards.

Other companies so tagged were, African Paints Plc, A.G. Leventis Plc, Capital Hotel Plc, Caverton Offshore Support Group Plc, Great Nigerian Insurance Plc, Infinity Trust Mortgage Plc, Interlinked Technology Plc, Nigerian Ropes Plc, Transcorp Hotels Plc, Union Bank of Nigeria Plc, the Tourist company and Champion Breweries.