Newrest ASL Nigeria Plc has through its Stockbroker, Helix Securities Limited, submitted an application to the Nigerian Stock Exchange (The Exchange) for voluntary delisting of the entire 634,000,000 ordinary shares of the Company from the Daily Official List of The Exchange.
This decision to delist from the NSE results from the inability of Newrest ASL Nigeria Plc (formerly Airline Services & Logistics Plc), to meet up with the 20percent free float requirement of The Exchange.
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 a minimum of 15percent of issued and fully paid up shares while that of the Main Board is a minimum of 20percent of the issued and fully paid up shares.
Companies listed on the Premium Board are also required to have a free float of a minimum of 20percent of issued and fully paid up shares or the value of its free float is equal to or above N40 billion on the date The Exchange receives the Issuer’s application to list.
In line with the provisions of Rule 1.10 of the Rules for Delisting of Equity Securities from the Daily Official List of The Exchange which states that: “The Issuer shall set aside funds sufficient to purchase the interest of all shareholders who expressed their dissent to the resolution to de-list the Issuer; and the Funds shall be domiciled with a Registrar or a Custodian duly registered by and in good standing with the Securities and Exchange Commission”, the Company’s stockbroker has informed The Exchange that it has opened and deposited sufficient funds to settle minority shareholders in an Escrow Account with Zenith Bank Plc to be managed by Meristem Registrars Limited.
