Champion Breweries Plc has confirmed that it has met the minimum free float requirement set by the Nigerian Exchange Limited, marking a key regulatory milestone for the company and restoring its full compliance status on the exchange.
The brewer disclosed this in a notification to shareholders and the investing public, stating that it had received confirmation from NGX Regulation Limited that the company now satisfies the free float threshold required for firms listed on the Main Board of the Nigerian Exchange. The development follows the successful completion of recent capital raising initiatives that expanded the number of shares available for public trading.
Free float refers to the proportion of a company’s shares that are available for trading by the public in the stock market, excluding shares held by major insiders or strategic investors. Maintaining an adequate level of free float is a regulatory condition intended to improve market liquidity and ensure efficient price discovery in listed securities.
According to the company, the new share distribution lifted its free float above the required 20 per cent threshold applicable to companies listed on the Nigerian Exchange Main Board.
“Consequently, the Below Listing Standard (BLS) Compliance Status Indicator previously displayed beside the Company’s name across the NGX platforms will be removed by NGX RegCo,” the company stated.
The compliance milestone was achieved after the company concluded a two part capital raising programme consisting of a public offer and a rights issue. These transactions significantly increased the number of shares available to public investors and addressed the free float deficiency previously identified by the exchange.
“This development follows the recently concluded Public Offer and Rights Issue, which has enabled the Company to meet the requirements of Rule 3.1.4 of the Exchange’s Rules Governing Free Float Requirements, well ahead of the extended deadline of 31 October 2026 earlier approved by the Nigerian Exchange Group (NGX or the Exchange),” the company said.
Regulatory approval for the capital raising exercise had earlier been granted by the Securities and Exchange Commission. The process of allocating and crediting new shares to investors is currently nearing completion through the Central Securities Clearing System, which manages electronic settlement and share registration in Nigeria’s capital market.
Providing an update on the settlement process, the company explained that shareholders who participated in the rights issue had already received their allotted shares, while the crediting of shares to investors who subscribed through the public offer is ongoing.
“The completed capital raises, successfully approved by the Securities and Exchange Commission, are currently in the final stages of CSCS account crediting. All applicants under the Rights Issue have now been credited with their new shares, while crediting for applicants under the Public Offer is ongoing,” the statement added.
Champion Breweries also expressed appreciation to investors and regulators who supported the capital raising exercise and the company’s compliance efforts.
“The Board and Management of Champion Breweries Plc thank the investing community for their continued support of the Company’s long term vision and extend special appreciation to NGX RegCo for its guidance as the Company works with the Registrars and the Central Securities Clearing System Plc (CSCS) to complete the share crediting process,” the company said.
By resolving its free float deficiency ahead of the regulatory deadline, the brewer has strengthened its standing in the capital market while improving the liquidity of its shares. Analysts note that the development may enhance investor confidence and support more active trading of the company’s stock on the Nigerian Exchange.
