UPDC Gets 24-Month Window To Comply With NGX’s Free Float Rule

The Board of Directors of UPDC Plc has announced that NGX Regulation Limited (NGX RegCo) has approved the company’s request for a 24-month extension to meet the Nigerian Exchange’s free float requirements.

In a notification to shareholders seen by THE WHISTLER, the company disclosed that the extension, covering 2026 to 2028, will enable it to restore compliance with the free float threshold stipulated by Nigerian Exchange Limited (NGX) for companies listed on its Main Board.

Under NGX rules, Main Board-listed companies are required to maintain a free float of at least 20 per cent of issued and fully paid share capital or a free float market capitalisation of not less than N20bn.

The requirement is designed to ensure adequate liquidity in the market and promote transparency, price discovery, and investor protection.

UPDC said the extension would allow it to address its current free float deficiency and return fully to compliance with its post-listing obligations within the timeframe granted by NGX RegCo.

The company noted that the approval aligns with Rule 3.1.4 of the Exchange’s Rules Governing Free Float Requirements, which empowers the Exchange to suspend trading in a company’s securities if it fails to achieve the required free float within the stipulated period.

By securing the regulatory window, UPDC effectively avoids the risk of potential trading suspension while it works to rebalance its shareholding structure in line with the Exchange’s standards.

The Board and majority shareholders reaffirmed their commitment to strong corporate governance and regulatory compliance, stating that necessary steps would be taken to cure the free float deficiency within the approved timeline.

Free float requirements are a key listing condition on the NGX Main Board, ensuring that a sufficient proportion of shares is held by public investors rather than concentrated among majority or controlling shareholders. Market analysts note that maintaining adequate free float enhances stock liquidity and broadens investor participation.

UPDC’s announcement signals its intention to align fully with regulatory standards while maintaining its listing status on the NGX Main Board over the next two years.