By  MICHAEL EBOH

Five quoted companies — Tourist Company of Nigeria Plc, NPF Microfinance Bank Plc, Dangote Cement Plc, Studio Press Plc and Union Bank Nigeria Plc — are currently flouting the Nigerian Stock Exchange’s, NSE, requirement for minimum free float.

The NSE, in its X-Compliance report published on its website, said it identified these companies as having free float deficiencies, failing to meet the requirement of 20 per cent for companies on the Main Board of the Exchange.

According to the report, Tourist Company of Nigeria is recording a 1.31 per cent deficiency, NPF Microfinance Bank — 14.68 per cent, Dangote Cement — 5.11 per cent, Studio Press Plc — 8.46 per cent and Union Bank — 14 per cent deficiency.

The NSE, however, said that the companies have applied for waivers from its Quotations Committee and specifically provided compliance plans with tentative timelines to support their requests.

The NSE said, “Companies listed on The Exchange must 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 in their securities.

“The free float requirement for companies on the Main Board is 20 per cent and 15 per cent for Alternative Securities Market, ASEM, companies.

“The Exchange has identified five companies that have free float deficiencies. These companies applied for waivers from The Quotations Committee and specifically provided compliance plans with tentative timelines to support their requests.

“The Quotations Committee considered and approved an extended timeframe for the companies to regain compliance to this Listing Requirement.

“The companies are however required to also provide quarterly disclosure reports to The Exchange detailing their level of implementation of the compliance plans.”

The NSE further blacklisted 34 quoted companies, for their failure  to submit the financial statements in due time.

According to the NSE, quoted companies are required to file their financial statements on a timely basis in accordance with Appendix 111 of the Listing Rules, adding that these companies are operating below the NSE’s minimum listing standards and hence tagged operating Below Listing Standards, BLS.

The sanctions for non-compliance with periodic financial disclosure obligations are clearly spelt out in Appendix 111 of the Listing Rules and the Exchange will protect the integrity of its Rules,” the NSE stated.

The Exchange commended 15 companies for their efforts at ensuring a timely submission of their financial, saying that the companies exceeded the minimum listing standards in terms of timely disclosure of their audited annual financial performance.

“The Exchange is extremely proud of these companies and will continue to show case quoted companies that imbibe high corporate governance practices,” it said.