Neimeth International Pharmaceuticals Plc has commenced trading in its N2.44 billion rights issue on the Nigerian Exchange (NGX), offering shares at N4.00 each as part of its capital raising programme.
The development was disclosed in a market bulletin issued by NGX Regulation to dealing members.
The offer, which opened on Monday, April 27, 2026, is expected to provide fresh funding to support the company’s operational and growth objectives while giving existing shareholders an opportunity to maintain their stakes.
What the data is saying:
The rights issue is structured to raise approximately N2.44 billion at an offer price of N4.00 per share, indicating a significant capital injection into the business. The offer reflects a strategic balance between raising funds and preserving shareholder value through proportional allocation.
- The company is issuing 610,443,515 ordinary shares of 50 kobo each at N4.00 per share.
- The offer is based on one new share for every seven shares held as of February 2, 2026.
- Shareholders can trade their rights through a dedicated rights trading code on the NGX.
With the one-for-seven ratio, the structure ensures that shareholders who fully subscribe can retain their ownership proportions while supporting the company’s recapitalisation efforts.
More insights:
The capital raise aligns with the broader strategy of Neimeth International Pharmaceuticals Plc to strengthen its operations and expand production capacity in a competitive pharmaceutical market.
- The discounted pricing is also a deliberate move to attract strong participation from existing investors.
- The N4.00 offer price represents a significant discount to the prevailing market price of about N9.00 per share.
- Investor participation will likely depend on confidence in the company’s financial recovery and growth outlook.
- The relatively short offer window, closing on May 25, 2026, may limit participation time for some shareholders.
Overall, the pricing strategy and structure suggest an attempt by management to quickly mobilise funds while incentivising uptake among shareholders.
What you should know:
The rights issue comes on the back of a strong financial turnaround by the company, signaling improved performance and renewed investor confidence. Recent financial results indicate that the company is recovering from prior losses and stabilising its operations.
- The company posted a pre-tax profit of N1.49 billion for the year ended December 31, 2025, compared to a loss of N854.43 million in 2024.
- A foreign exchange gain of N48 million contributed to the improved performance, reversing a loss of over N2 billion recorded in the previous year.
- In Q4 2025, profit before tax stood at N1.15 billion, compared to a loss of N1.16 billion in Q4 2024.
- The share price closed at N9.25 on April 28, 2026, reflecting a 59.5% year-to-date gain from N5.80 at the start of the year.
The rights issue is therefore viewed as a strategic move to reinforce the company’s balance sheet, support working capital needs, and sustain its recovery trajectory amid ongoing economic challenges such as rising input costs and currency volatility.
I got an email from them. I was a shareholder in so how do I go about it now?