
Free Float: NGX RegCo extends compliance window for UPDC
The Nigerian Exchange Regulation Limited (NGX RegCo) has granted UPDC Plc a critical extension to rectify its free float deficiency.
The two-year grace period provides the real estate firm with additional time to bring its public shareholding spread in line with the exchange’s listing standards.
UPDC has 18,559,969,936 shares outstanding, but the X-Compliance Report, a transparency initiative of NGX Regulation’ Limited (NGX RegCo) shows that the company has just 4.89 percent of free float valued at N 5.214 billion. The compliance due date for the company expired on February 6, 2026.
“The Board of Directors of UPDC Plc hereby notifies its esteemed shareholders that NGX Regulation Limited (NGX RegCo) has approved the Company’s request for extension of time to achieve the required free float threshold within two years (2026-2028).
“This is to enable the Company to comply with Nigerian Exchange Limited’s free float requirements of 20 percent issued and fully paid share capital or N20 billion free-float market capitalisation for companies listed on its Main Board and to ensure that the Company returns to compliance with its post-listing obligations,” UPDC said in a recent statement at the NGX.
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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.
The free float requirements for companies listed on the various Boards of NGX show: For Growth Board, 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.
For Growth Board, a minimum of 15 percent 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.
For Main Board, 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.
For Premium Board, 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
The recent approval given to UPDC prevents immediate regulatory sanctions and allows the board to execute strategic maneuvers – such as a sell-down by major shareholders or a new share issuance – to meet the 20 percent free float threshold.
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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