Petroleum company, Eterna Plc, has recorded 33% growth in a month as its share price closes at N6.65 per share, taking the market capitalization to N8.67 billion.
The growth in share prices which was recorded by the company can be attributed to the anticipation of the takeover bid by Preline Limited announced on April 19, 2022.
Hence, the rally in the shares of the company resulted in a gain of N2.15 billion in market capitalization as at the close of trading activities on Nigeria’s stock exchange on Friday, April 22, 2022.
The shares of the quoted company increased from N5.00 per share as at March 22, 2022, to N6.65 per share, on April 22, 2022, to represent a growth of 33% which in monetary terms is N1.65.
The buy interests witnessed in the shares of ETERNA Plc positively influenced the company’s market capitalization from N6.52 billion to N8.67 billion at the end of the day’s trading activities, taking the gains to N2.15 billion.
The shares of the company have gained 31.68% from year-to-date, starting the year at N5.05 and currently traded at N6.65.
The company’s shares are currently trading 24.43% lower than their 52-week high at N8.80. However, the shares of the company have returned about 36.83% gains for investors who bought them at their 52-week low trading price of N4.86 per share.
What you should know
Eterna Plc recently notified the Exchange and investing public that the SEC has granted Preline Limited the Authority to Proceed with the acquisition of 1,300,000 units of ordinary shares, equivalent to 0.10% stake in Eterna Plc.
In November 2021, the company released a statement on the acquisition of over 700 million units of ordinary shares by Preline Limited, to become the largest and majority shareholder of Eterna plc. The acquisition of over 700 million units of Eterna Plc shares by Preline Limited, triggered a mandatory tender offer (MTO) provisions of the Investment and Securities Act and Securities Exchange Commission (SEC) Regulations. Hence, shareholders have been placing their holdings up for sale.
As contained in the company’s Audited Financial result for the year ended December 31, 2021, revenue for the period was recorded as N82.20 billion, from N58.72 billion in 2020, representing a growth of 39.99.
Meanwhile, the company recorded loss for the period as N1.10 billion from a profit position of N941 million in 2020.
Loss per share was recorded as N0.84 kobo as against an EPS of N0.72 kobo recorded in the corresponding period of 2020. Subscribe to the Nairametrics Stock Select Newsletter to view our stock pick.