Eterna Plc set to raise N21.52 billion through rights issue

Eterna Plc, a Nigerian integrated energy company, is set to raise N21.52 billion through a rights issue, aiming to strengthen its balance sheet and drive strategic expansion.

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The company will issue 978,108,485 ordinary shares at N22.00 per share, the company disclosed at the official signing ceremony for the rights issue held on Tuesday.

A rights issue involves a company offering existing shareholders the right to buy additional shares at a discounted price, usually below market price.

The rights issue, as stated by the company, follows shareholder approval at the July 2025 Annual General Meeting (AGM).

Under the structure of the rights issue, it said existing shareholders are entitled to subscribe for three new ordinary shares of 50 kobo each for every four ordinary shares held as at the close of business on 27 November 2025.

It explained that the subscription period will run from 12 January 2026, when the acceptance list opens, to 18 February, when it officially closes, adding that all new shares issued will rank pari passu with existing ordinary shares.

“This capital raise follows Eterna Plc’s strong financial performance in recent years,” it said.

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It noted that proceeds from the rights issue will be deployed to support several strategic initiatives, including the expansion of the retail network, upgrading of the lubricant blending plant, enhancement of LPG retail assets, acquisition of commercial delivery assets, expansion of aviation fueling operations, and investment in ESG-related projects.

A portion of the capital raised, it said, will also serve as an operational working capital buffer to enhance day-to-day liquidity, including inventory financing and short-term trade payables.

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This, it said, is expected to provide resilience against market volatility, foreign exchange fluctuations, and potential supply disruptions.

The Nigerian downstream oil and gas sector continues to undergo structural reforms, regulatory adjustments, and macroeconomic pressures, such as fuel price deregulation, foreign exchange instability, and volatility in global crude oil prices.

Despite these challenges, Eterna Plc said it has maintained resilience through its diversified and integrated operations across fuel distribution, lubricant manufacturing, LPG retailing, and aviation fueling.