The Board of Directors of UPDC Plc has announced that NGX Regulation Limited (NGX RegCo) has granted the company a 24-month extension to comply with the Nigerian Exchange’s (NGX) free float requirements.
In a notification to shareholders, UPDC confirmed that the extension, spanning 2026 to 2028, provides the company additional time to meet the free float threshold required for firms listed on the NGX Main Board.
Under NGX regulations, companies listed on the Main Board must maintain a minimum free float of 20 percent of their issued and fully paid share capital or a free float market capitalization of at least N20 billion. The rule is intended to enhance market liquidity, strengthen price discovery mechanisms, promote transparency, and protect investors.
UPDC stated that the regulatory extension will enable it to resolve its current free float shortfall and restore full compliance with its post-listing obligations within the approved timeframe.
The approval aligns with Rule 3.1.4 of the Exchange’s Rules Governing Free Float Requirements, which authorizes the Exchange to suspend trading in a company’s securities if it fails to meet the stipulated free float threshold within the prescribed period.
By obtaining the extension, UPDC has mitigated the risk of a potential trading suspension while it undertakes measures to restructure its shareholding in line with NGX standards.
The Board and majority shareholders reaffirmed their commitment to corporate governance and regulatory compliance, emphasizing that strategic steps are being implemented to address the deficiency within the granted window.
Free float compliance remains a core listing requirement on the NGX Main Board, ensuring that a meaningful proportion of shares is held by public investors rather than concentrated among controlling stakeholders. Market analysts note that adequate free float enhances stock liquidity and broadens investor participation.
UPDC’s latest disclosure underscores its intention to maintain its listing status on the NGX Main Board while aligning fully with regulatory requirements over the next two years.
