By Chinyere Joel-Nwokeoma
Some stakeholders in the capital market have faulted the listing of MTN Nigeria Communications Plc. on the nation’s bourse in spite of unavailability of the mandatory 20 per cent free float.
They told the News Agency of Nigeria (NAN) on Monday in Lagos that the price of MTN Nigeria shares would continue to skyrocket due to their scarcity at the detriment of retail shareholders.
The stakeholders blamed the Nigerian Stock Exchange (NSE) for approving the company’s listing without the mandatory free float.
Free float or public float refers to the shares of a company that can be publicly traded and are not restricted.
In other words, the term is used to describe the number of shares available to the public for trading in the secondary market.
NAN reports that free float for companies listed under NSE Premium Board is 20 per cent.
Mr Ambrose Omordion, the Chief Operating Officer, Invest Data Ltd.,…