UPDC Plc has given update on its free float –which represents the portion of its shares in the hands of public investors as opposed to locked-in shares held by insiders or investors with controlling-interest.

UPDC Plc noted in a recent notice signed by Folake Kalaro, Company Secretary/Legal Adviser, that following the acquisition of its majority shares by Custodian Investment Plc, the Company has fallen below the Nigerian Exchange Limited’s (the Exchange or NGX) free float requirements of 20percent of issued share capital or N20billion free float value for companies listed on the Exchange’s Main Board.

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NGX Regulation Limited (NGX RegCo) and the Company have been in discussions on the issue and the following resolutions have been reached: NGX RegCo has granted the Company a two (2) year grace period till August 10, 2023 to comply with NGX’s free float requirements.

In line with Rule 3.1.4 of the Rules Governing Requirements for Companies Listed on the Exchange (Free Float Rules), the Exchange may suspend further trading in the Company’s securities if compliance with the Free Float Rules is not achieved within the two (2) years grace period.

The Company and its majority shareholders however remain fully committed to ensuring compliance with the Free Float Rules within the grace period.

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By Iheanyi Nwachukwu • August 23, 2021

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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