Multi-Trex Buys Time: NGX Grants 24-Month Window to Fix Low Free Float
Multi-Trex Integrated Foods Plc has received regulatory approval from the Nigerian Exchange (NGX) to take steps toward increasing the number of its shares available to the public, following a recapitalisation that pushed its free float below required levels.
What the NGX Approved
NGX Regulation Company has granted Multi-Trex a 24-month moratorium, running until January 14, 2028, to restore its public shareholding to regulatory standards. Under NGX Main Board rules, listed companies must maintain:
• At least 20% of issued shares in public hands, or
• A market capitalisation of ₦20 billion held by the public (whichever is lower).
This extension gives the company time to restructure its ownership while remaining listed on the Exchange.
Why Multi-Trex Fell Below the Requirement
The low free float resulted from a recapitalisation exercise that followed a seven-year shutdown of operations. During the restructuring:
• N-Foods Universal Concept Limited injected fresh capital
• The funds were used to settle obligations to AMCON
• As a result, N-Foods now owns 70% of Multi-Trex’s shares
This left public shareholders with just 7.23% free float, valued at about ₦117.46 million, based on the company’s 2024 audited accounts.
What the Company Is Saying
Multi-Trex has reassured shareholders of its commitment to:
• Retaining its NGX listing
• Actively pursuing strategies to raise public shareholding
Management warned that failure to meet the free-float threshold within the 24-month window could lead to:
• Trading suspension, or
• Possible delisting from the Exchange
The company also thanked shareholders for their patience during its recovery phase and highlighted ongoing efforts to strengthen operations and regulatory compliance.
Why This Matters to Investors
This approval is a critical milestone in Multi-Trex’s turnaround story. It:
• Keeps the company listed while it restructures ownership
• Signals regulatory confidence in its recovery plan
• Sets a clear deadline that investors should monitor closely
However, the risk is real: if the free float is not restored by 2028, market access could be restricted.
Big Picture Takeaway
Multi-Trex has bought itself time, not immunity. The next two years will be decisive — not just for compliance, but for rebuilding investor confidence and improving market liquidity.
For investors, this is a situation to watch carefully, not ignore.
Multi-Trex Integrated Foods Plc has received regulatory approval from the Nigerian Exchange (NGX) to take steps toward increasing the number of its shares available to the public, following a recapitalisation that pushed its free float below required levels.
What the NGX Approved
NGX Regulation Company has granted Multi-Trex a 24-month moratorium, running until January 14, 2028, to restore its public shareholding to regulatory standards. Under NGX Main Board rules, listed companies must maintain:
• At least 20% of issued shares in public hands, or
• A market capitalisation of ₦20 billion held by the public (whichever is lower).
This extension gives the company time to restructure its ownership while remaining listed on the Exchange.
Why Multi-Trex Fell Below the Requirement
The low free float resulted from a recapitalisation exercise that followed a seven-year shutdown of operations. During the restructuring:
• N-Foods Universal Concept Limited injected fresh capital
• The funds were used to settle obligations to AMCON
• As a result, N-Foods now owns 70% of Multi-Trex’s shares
This left public shareholders with just 7.23% free float, valued at about ₦117.46 million, based on the company’s 2024 audited accounts.
What the Company Is Saying
Multi-Trex has reassured shareholders of its commitment to:
• Retaining its NGX listing
• Actively pursuing strategies to raise public shareholding
Management warned that failure to meet the free-float threshold within the 24-month window could lead to:
• Trading suspension, or
• Possible delisting from the Exchange
The company also thanked shareholders for their patience during its recovery phase and highlighted ongoing efforts to strengthen operations and regulatory compliance.
Why This Matters to Investors
This approval is a critical milestone in Multi-Trex’s turnaround story. It:
• Keeps the company listed while it restructures ownership
• Signals regulatory confidence in its recovery plan
• Sets a clear deadline that investors should monitor closely
However, the risk is real: if the free float is not restored by 2028, market access could be restricted.
Big Picture Takeaway
Multi-Trex has bought itself time, not immunity. The next two years will be decisive — not just for compliance, but for rebuilding investor confidence and improving market liquidity.
For investors, this is a situation to watch carefully, not ignore.