Eterna Plc, a leader in Nigeria’s energy sector, has announced a N21.518 billion rights issue, offering 978,108,485 new Ordinary Shares at a fixed price of N22.00 per share.
This offer is made on the basis of 3 new shares for every 4 shares held by shareholders as of the close of business on November 27, 2025.
The Rights Issue opened on January 12, 2026, and will close on February 18, 2026.
Key details of the offer
- Qualification date price: N35.50 per share
- Current market price: N32.00
- Right Issue price: N22.00
- Discount to qualification date price: N13.50 (38%)
- Post-rights reference price: N29.71.
This discounted offer presents a significant opportunity for Eterna’s existing shareholders to increase their stakes at a more attractive valuation compared to the market price on the qualification date.
The N21.518 billion raised from the Rights Issue is expected to be allocated as follows:
- N11 billion (52.291%) for strategic business expansion
- N10.036 billion (47.71%) for operational working capital
About Eterna Plc
Eterna Plc is listed on the Nigerian Exchange (NGX).
The company manufactures and distributes lubricants and chemicals, trades crude oil, and operates a growing network of filling stations.
It also plans to expand into the midstream and upstream segments of the energy sector.
Eterna operates a world-class lubricants blending plant with a state-of-the-art laboratory, producing Castrol and Eterna-branded products for Nigeria and the wider West African market.
The company has also expanded its fuels and marketing infrastructure, including a 34-million-litre coastal tank farm in Lagos, an aviation fuel depot near Nnamdi Azikiwe International Airport, Abuja, and a growing number of filling stations nationwide.
How the Rights Issue could impact Eterna
The N21.518 billion rights issue provides Eterna Plc with a timely opportunity to restructure its balance sheet, particularly by addressing its elevated debt levels and tight liquidity position.
As of September 2025, the company’s debt-to-equity ratio stood at about 7 times, highlighting the extent to which finance costs continue to weigh on earnings.
A portion of the proceeds is expected to be applied to debt reduction, which should ease interest expenses and improve earnings quality over time.
While this may not immediately translate into a sharp jump in profitability, it reduces balance sheet risk and improves the sustainability of future earnings.
The enlarged share base following the rights issue will lead to near-term dilution of earnings per share.
However, management’s projections suggest that the impact of dilution could be partly offset by lower finance costs and improved operating efficiency.
For context, full-year 2025 profit is forecast at around N1 billion, translating to an estimated 77 kobo per share, while projected first-quarter 2026 earnings of N485 million imply an EPS of about 21 kobo, even after accounting for the additional shares.
Shareholders takeaways
- For existing shareholders, this provides an opportunity to increase exposure at a significantly lower cost and reduce the average price of their holdings.
- Using most of the N21.518 billion to reduce debt and improve working capital should lower Eterna’s financial risk. With borrowings still high, paying down debt will reduce interest costs and make earnings less volatile.
- The rights issue does dilute EPS, but the impact is measurable and not destructive. After the issue, profits are spread over a much larger base. On its own, this would lower EPS. However, management’s earnings projections suggest the dilution is largely absorbed by earnings:
Bottomline
For shareholders with a medium-term outlook, participating in the rights issue helps protect against dilution and allows additional shares to be acquired at a significant discount.
