JKH’s processed food subsidiary moves down to secondary board

Keells Food Products PLC (KFP), the processed food manufacturing arm of the country’s largest conglomerate John Keells Holdings PLC (JKH), yesterday got itself transferred to the secondary Diri Savi Board from the Main Board of the Colombo Stock Exchange (CSE). 
JKH had divested some of its shares this August to keep KFP listed on the CSE under the minimum public float rules, which were revised last month.

Under the old rules, to remain listed on the secondary Diri Savi Board, a company had to have 10 percent public ownership of shares spread among 200 shareholders.
This is also true under the new rules, although they also allow for a company to remain listed on the Diri Savi Board with a minimum public float of 7.5 percent, if the market capitalization of the public float exceeds Rs.1 billion.
KFP’s total market capitalization as at yesterday was recorded at Rs.4.16 billion.
KFP would have had to comply with at least a 20 percent public float spread amongst 500 shareholders if it wanted to remain on the Main Board.
JKH held 89.89 percent of the shares of KFP at the end of the second quarter of 2017.