Multi-Trex Integrated Foods Plc has secured a crucial regulatory lifeline from the Nigerian Exchange, winning approval to embark on measures to correct a shortfall in its public shareholding after a major recapitalisation reshaped its ownership structure.
In a statement signed by Company Secretary Sogunle Adekunle, the company disclosed that NGX Regulation Company has granted it a 24‑month moratorium to restore its free float to the minimum threshold required for companies listed on the Main Board. Under NGX rules, issuers must maintain a free float of at least 20 per cent of issued share capital or a market capitalisation of 20 billion naira, whichever is lower.
The waiver gives Multi-Trex until 14 January 2028 to rebuild its public float, which fell sharply following a restructuring that brought in new core investors and cleared legacy debts.
The recapitalisation followed a seven‑year halt in operations and saw N‑Foods Universal Concept Limited inject fresh capital to settle the company’s obligations to the Asset Management Corporation of Nigeria. In return, N‑Foods emerged as the dominant shareholder, now holding 70 per cent of Multi-Trex’s issued share capital.
This concentration of ownership has left the company’s public free float at just 7.23 per cent, valued at about 117.46 million naira, according to its 2024 audited financial statements, well below NGX’s Main Board requirement.
Multi-Trex told shareholders it remains committed to retaining its listing status and is “actively exploring strategies” to broaden public participation in its equity. Options typically considered in such situations include secondary offerings, private placements with subsequent market dispersion, or partial divestment by controlling shareholders to deepen liquidity.
The board cautioned that failure to meet the free float threshold within the moratorium period could expose the company to sanctions, including possible suspension of trading in its shares or eventual delisting from the exchange.
Management used the update to reassure investors that the recapitalisation has stabilised the business and laid the groundwork for a sustained turnaround, even as it works to align with market regulations. It also expressed appreciation to shareholders for their patience during the company’s recovery phase.
The NGX approval marks a significant milestone in Multi-Trex’s rehabilitation, providing a defined regulatory window within which the food manufacturer must not only consolidate its operational comeback but also rebuild a sufficiently broad investor base to meet public float standards.
