Multi-Trex Integrated Foods Plc, a company listed on the Nigerian Exchange Limited (NGX), has received conditional approval from NGX Regulation Company (NGX RegCo) to implement measures aimed at increasing its public shareholding. This follows a recent recapitalisation exercise that reduced the company's free float below the minimum threshold required for continued listing on the NGX Main Board.
In a disclosure signed by Company Secretary Sogunle Adekunle and released to the market on Tuesday, January 27, 2026, Multi-Trex announced that NGX RegCo had granted a 24-month moratorium ending on January 14, 2028. During this period, the company must restore its public free float to comply with NGX rules—specifically, at least 20 per cent of issued share capital or a free float market capitalisation of ₦20 billion, whichever is lower.
The free float contraction resulted from a strategic recapitalisation undertaken to revive the company's operations after a prolonged period of dormancy. Multi-Trex had ceased active production for about seven years due to financial challenges, including significant obligations to the Asset Management Corporation of Nigeria (AMCON). To address these liabilities and facilitate business recovery, N-Foods Universal Concept Limited injected fresh capital, settling outstanding debts and enabling the company to regain operational momentum.
As a direct outcome of this intervention, N-Foods Universal Concept Limited acquired a controlling stake, now holding 70 per cent of Multi-Trex's issued share capital. According to the company's 2024 audited financial statements, this left the public free float at just 7.23 per cent, equivalent to a market value of approximately ₦117.46 million (based on prevailing share prices at the time of the statements).
The recapitalisation has been pivotal in stabilising Multi-Trex's financial position and positioning it for resumed operations. The company, which specialises in integrated food processing—including products like palm oil derivatives, confectionery, and agro-allied items—plans to diversify further into areas such as bottled water, liquid chocolate drinks, and other commodities. Management has outlined ambitions to inject over ₦5 billion into expansion over the next five years, with production restart targeted for early 2026 following debt clearance and facility retooling.
In its statement to shareholders, Multi-Trex reaffirmed its strong commitment to maintaining its listing status on the NGX. The company assured investors that it is actively exploring various strategies to broaden investor participation and increase the public free float within the granted timeframe. These may include rights issues, public offers, private placements to retail investors, or other capital market instruments designed to disperse share ownership.
Management cautioned that failure to meet the required free float threshold by the end of the moratorium could trigger regulatory sanctions, including potential suspension of trading or delisting from the NGX. Such outcomes would limit access to capital markets and affect shareholder liquidity.
The NGX Main Board free float rules are intended to promote market liquidity, price discovery, and broad-based ownership, reducing risks associated with concentrated shareholding. Companies falling below the threshold face compliance pressures, and extensions like this are granted conditionally to allow reasonable time for corrective actions without immediate punitive measures.
Multi-Trex's situation reflects broader challenges faced by some Nigerian-listed firms emerging from financial distress or restructuring. Recapitalisations often concentrate ownership temporarily as strategic investors step in to rescue operations, but regulators require eventual dispersion to protect minority shareholders and maintain market integrity.
The company has made progress in recent months, including shareholder approvals for capital restructuring in late 2025 and listings of additional shares following private placements. These steps have helped clear legacy debts and position Multi-Trex for growth in Nigeria's competitive food and agro-processing sector.
Analysts view the 24-month window as a pragmatic regulatory response, giving the company breathing room to execute its recovery plan while working toward compliance. Success in restoring the free float could enhance trading volumes, attract institutional investors, and support long-term valuation as operations ramp up.
For shareholders and market participants, the extension provides reassurance that Multi-Trex remains focused on sustainability and regulatory adherence. The coming months will be critical as the company balances operational revival with efforts to widen its investor base.
With Nigeria's capital market continuing to evolve amid economic reforms, cases like Multi-Trex highlight the importance of adaptive regulatory frameworks that support corporate recovery while upholding listing standards. The NGX's conditional approval underscores a balanced approach to enforcement, prioritising long-term market health over immediate penalties.
