NGX Regulation Limited (NGX RegCo) has granted International Breweries Plc an extension of time (till 2027) to comply with the free float requirements for companies listed on the Main Board of Nigerian Exchange Limited (NGX).
Free float, also known as public float, refers to the shares of a company that can be publicly traded and are not restricted (held by insiders). It is used to describe the number of shares that is available to the public for trading in the secondary market.
International Breweries is listed on the Main Board and the percentage of its free float is 2.58 percent while its free float value is just N23.446billion. The company’s shares outstanding are 168,291,591,406 units.
The company now has compliance due date of December 27, 2027, according to the X-Compliance report of the Nigerian Exchange as at January 17.
“We sincerely appreciate NGX RegCo for their continued support and consideration in granting this extension,” the brewer said on Wednesday.
Companies listed on NGX 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.
Read also: Dangote Cement, International Breweries top firms with highest shareholders’ equity in H1
At N5.15 per share as at January 21, International Breweries trades near its 52-week high of N6.28. The stock has decreased this year by 7.21percent. The stock closed year 2024 at N 5.55, after rising by 15.63percent.
Earlier this year, the NGX revealed the results of its full-year review of market indices which shows International Breweries Plc as one of the new entrants into the NGX 30 Index.
International Breweries Plc unaudited condensed financial statements for the three months ended September 30, 2024 shows its loss widened by four-folds to N112.814billion as against loss of N28.553billion in same period of 2023.
Also, further analysis revealed that the brewer’s other expenses in the nine months period of 2024 surged to N147.6 billion from N36.2 billion in the same period of 2023, as cost of sales grew to N248.6 billion from N126.4 billion.
International Breweries net finance cost also surged to N29.2 billion from N11.1 billion. Revenue jumped to N343.4 billion from N183.8 billion during the reviewed period.
The free float requirements for companies listed on the various Boards of NGX are: for Growth Board, it is a minimum of 10 percent of the issued and fully paid-up shares or the value of its free float is equal to or above N50 million, for entry segment; while for Growth Board, it is a minimum of 15percent of the issued and fully paid-up shares or the value of its free float is equal to or above N50 million, for standard segment.
Also, for ASeM, the free float is a minimum of 15 percent of issued and fully paid-up shares or the value of its free float is equal to or above N50 million. For Main Board, it is a minimum of 20 percent of the issued and fully paid-up shares or the value of its free float is equal to or above N20 billion; while for Premium Board, it is a minimum of 20 percent of issued and fully paid-up shares or the value of its free float is equal to or above N40 billion.
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