Multi-Trex Integrated Foods Plc has received a regulatory nod from the Nigerian Exchange (NGX) to take steps toward increasing its public shareholding. The approval comes after the company’s recapitalisation left its free float below the Main Board requirement, prompting the need for corrective measures.
According to a statement from Company Secretary Sogunle Adekunle, NGX Regulation Company has granted Multi-Trex a 24-month moratorium, ending January 14, 2028. This period allows the company to restore its free float to at least 20% of issued share capital, or a market capitalisation of N20 billion, whichever is lower. The extension offers a structured timeline for the company to meet regulatory standards while implementing strategies to boost shareholder participation.
The recapitalisation followed a seven-year pause in operations and involved N-Foods Universal Concept Limited injecting capital to settle obligations with the Asset Management Corporation of Nigeria. Following the recapitalisation, N-Foods Universal Concept now controls 70% of Multi-Trex’s issued share capital, leaving the public free float at 7.23%, valued at N117.46 million, according to the company’s 2024 audited financial statements.
Multi-Trex’s board emphasized its commitment to maintaining its listing on the NGX, assuring shareholders that it is actively exploring initiatives to increase public shareholding. The statement also warned that failure to meet the NGX threshold within the moratorium could lead to trading suspension or even delisting, highlighting the importance of timely compliance.
Management expressed gratitude to shareholders for their patience during the recovery phase, noting the strategic measures being taken to strengthen operations and align with market regulations. The NGX approval marks a crucial milestone for Multi-Trex, providing a clear regulatory pathway to enhance public investor participation while supporting long-term business recovery.
source: punch