NGX Grants Notore Chemical Industries Free Float Extension

Kayode Tokede

The Nigerian Exchange Limited (NGX) has approved Notore Chemical Industries Plc’s free float compliance extension request for two years.

According to the X-compliance report of the exchange, the company has 0.87 per cent free float deficiency worth N874.77million in value.  

The agro-allied & chemicals currently listed 1,612,066,200.00 outstanding shares with a market capitalisation of N100.75billion on the exchange.

Companies listed on NGX are required to maintain a minimum free float for the set standards under which they are listed to ensure that there is an orderly and liquid market for their securities.

For Notore Chemical Industries listed on the mainboard is expected to have a minimum of 20per cent of the issued and fully paid-up shares or the value of its free float is equal to or above N20 billion.

The Board of Directors of the company in a statement signed by Group Managing Director, Mr. Ohis Ohiwerei said the extension is to enable the Company to comply with the NGX’s free float requirement for companies listed on its Main Board and to ensure that the Company returns to its post-listing obligations.

According to the statement, “Rules Governing Free Float: According to the Board, this is in line with Rule 3.1.4 of The Exchange’s Rules Governing Free Float Requirements, which states that: The Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe”

The statement noted that the Company’s Board and Management steadfastly uphold good corporate governance principles, demonstrating a resolute commitment to rectifying the free float deficiency within the prescribed timeline set forth by NGX Regulation Limited (NGX RegCo), failing which NGX RegCo may suspend trading in its securities.

“We are diligently working towards ensuring compliance to maintain the integrity of our trading environment,” the statement noted. 

The Group Managing Director, of Notore, Ohis Ohiwerei  in a statement, acknowledged the company’s resilience, noting “While we successfully addressed the gas supply limitation, the impact of earlier challenges lingers in our financial performance. 

He said that Notore is diligently working to recover the lost revenues from previous quarters. 

“Our dedicated teams are implementing strategic measures to optimize production, reduce costs, and explore avenues for revenue generation. These efforts and our renewed gas supply provide a solid foundation to navigate the remaining challenges and move towards financial stability.

Ohiwerei further emphasised, “In the latter part of the third quarter of 2023, we resolved the gas supply limitation and gradually resumed production. I am confident in the Company’s steadfast commitment to finding innovative solutions even in the most challenging circumstances, paving the way for growth initiatives in 2024.” 

Financial performance: Notore Chemical Industries recorded an N66.24 billion loss before tax in third quarter (Q3) 2023 from N949.6 million reported in Q3 2022.

Key factors that contributed to Notore Chemical Industries’ recent bad performance include: a 61.4peer cent drop in revenue from contracts with customers to N12.7 billion in Q3 2023 from N32.95 billion in Q3 2022, while net finance cost increased to N51.53 billion in Q3 2023, an increase of 296.2per cent from N13.01billion reported in Q3 2022.