Multi-Trex Integrated Foods Plc has received approval from the Nigerian Exchange (NGX) to take measures aimed at increasing its public shareholding. This move follows a recapitalisation effort that resulted in the company’s free float falling below the minimum requirement for the Main Board. The NGX Regulation Company has granted Multi-Trex a 24-month moratorium, ending January 14, 2028, to restore its free float to at least 20% of its issued share capital or achieve a market capitalisation of N20 billion, whichever is lower.
The recapitalisation, which came after a seven-year cessation of operations, involved N-Foods Universal Concept Limited injecting capital to settle obligations to the Asset Management Corporation of Nigeria. As a result, N-Foods Universal Concept Limited now controls 70% of Multi-Trex’s issued share capital, leaving the company’s public free float at 7.23%, valued at N117.46 million, according to the 2024 audited financial statements.
The company has assured investors that it is committed to maintaining its listing on the NGX and is actively exploring strategies to increase the public free float. Failure to meet the NGX threshold within the extension period could result in trading suspension or potential delisting of the company’s securities. The management has expressed appreciation to shareholders for their continued patience and support during the company’s recovery phase, highlighting the strategic measures undertaken to strengthen operations and compliance with market regulations.
The NGX approval marks a significant milestone in Multi-Trex’s ongoing business recovery, providing the company with a clear regulatory pathway to enhance public participation in its shareholding while ensuring compliance with market standards. The company’s commitment to increasing its public free float is crucial to maintaining its listing on the NGX and ensuring the stability of its operations. With the extension period, Multi-Trex has a unique opportunity to implement strategic plans and restore its free float to the required level, thereby ensuring the continued participation of investors in the company’s growth and development.
