LivingTrust Mortgage Bank, one of Nigeria’s private mortgage banks regulated by the CBN, has announced plans by its majority shareholders to make available 750 million ordinary shares of the company for trading to members of the public, it said in a disclosure statement to the Nigerian Exchange Group.
According to the disclosure, the primary mortgage bank said the plan for the free float is in compliance with the mandate from the NGX and comes after the approval by RegCo to address its free float deficiency.
LivingTrust further stated that the plan, as approved by the regulator, is to release the shares to the public to prevent a suspension of its shares on the exchange.
For clarity, free float means the total number of outstanding shares that an issuer has and available to be traded on the local bourse. Consequently, the standard segment requirements by the exchange mandate an issuer on the Growth Board to have 15 percent of its issued share capital to be made available for public trading whilst being held by not less than 51 shareholders with a value of N50 million or more.
As the free float period begins immediately, LivingTrust revealed that, “with this approval, the compliance period for the company has been extended by two years, commencing immediately and ending on 20th August 2023. During this period, LivingTrust will hold a fact-behind-the-figures session and an earnings call, amongst other activities to showcase the company’s performances.”
“While notifying our esteemed shareholders that the company is fully aware that the exchange may suspend trading in its securities if it does not achieve the required free-float threshold with the extension period, we wish to say that the company has commenced the implementation of the approved compliance plan to ensure that compliance is achieved within the period allowed,” it said.