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Multi-Trex Integrated Foods Plc has secured approval from the Nigerian Exchange to take steps aimed at increasing its public shareholding, following a recapitalisation that left its free float below the Main Board requirement.
According to a statement signed by the Company Secretary, Sogunle Adekunle, on Wednesday, NGX Regulation Company granted the company a 24-month moratorium, ending 14 January 2028, to restore its free float to at least 20 per cent of issued share capital or a market capitalisation of 20bn, whichever is lower.
This extension provides the company with additional time to comply with regulatory requirements while implementing strategic plans to increase shareholder participation.
The recapitalisation, which followed a seven-year cessation of operations, involved Messrs 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 per cent of Multi-Trex’s issued share capital, leaving the company’s public free float at 7.23 per cent, valued at N117.46m, according to the 2024 audited financial statements.
In a statement to shareholders, the company emphasised its commitment to maintaining its listing on the NGX and assured investors that it is actively exploring strategies to increase the public free float.
The board warned that failure to meet the NGX threshold within the extension period could result in trading suspension or potential delisting of the company’s securities.
The statement read, “While this recapitalisation successfully stabilised the Company, it resulted in a contraction of the Company’s public free float. According to our 2024 Audited Financial Statements, our Company’s free float stood at 7.23% (with a value of N117,457,100.64). This is below the NGX Main Board requirement, which mandates a free float of either 20% of issued share capital or a market capitalisation of N20 billion.
“In view of the above, the Company applied to the NGX for an extension of time to comply with the free float threshold. We are pleased to announce that the NGX Regulation Company (NGX RegCo) has conditionally granted the Company a 24-month moratorium, ending on January 14, 2028, to take the necessary steps to restore the free float to the required level.”
The management 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.
Multi-Trex Integrated Foods’ NGX approval marks a milestone in its ongoing business recovery, giving the company a clear regulatory pathway to enhance public participation in its shareholding while ensuring compliance with market standards.
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