Eterna Plc has launched a N10 billion rights issue, offering 978,108,485 new ordinary shares at N22.00 per share on the basis of 3 new shares for every 4 shares held as of November 27, 2025.
Okay News reports that the offer opened on January 12, 2026, and will close on February 18, 2026.
The qualification date price was N35.50 per share, while the current market price stands at N32.00, giving the rights issue a 38 per cent discount to the qualification price and a post-rights reference price of N29.71.
The N10 billion raised will be allocated as follows:
- N4.5 billion for debt reduction to lower interest-bearing loans and improve financial leverage.
- N3 billion for operational working capital to enhance liquidity and day-to-day management.
- N2 billion for capital expenditure to support growth and expansion projects.
- N500 million to cover issuance costs.
Eterna Plc, listed on the Nigerian Exchange (NGX), manufactures and distributes lubricants and chemicals, trades crude oil, and operates a growing network of filling stations.
It plans to expand into midstream and upstream segments of the energy sector.
The company runs a world-class lubricants blending plant with a state-of-the-art laboratory, producing Castrol and Eterna-branded products for Nigeria and West Africa.
Eterna has also developed fuels and marketing infrastructure, including a 34-million-litre coastal tank farm in Lagos, an aviation fuel depot near Nnamdi Azikiwe International Airport in Abuja, and an expanding network of filling stations nationwide.
The rights issue provides an opportunity for existing shareholders to increase their stakes at a discounted valuation compared to the market price.
The proceeds will help restructure the balance sheet by addressing elevated debt levels and improving liquidity.
As of September 2025, Eterna’s debt-to-equity ratio stood at about 7 times, with finance costs weighing on earnings.
Debt reduction is expected to ease interest expenses and improve earnings quality over time.
While the enlarged share base will cause near-term dilution of earnings per share, management projections suggest the impact will be partly offset by lower finance costs and improved operating efficiency.
Full-year 2025 profit is forecast at around N1 billion (about 77 kobo per share), while first-quarter 2026 earnings of N485 million imply an EPS of about 21 kobo after the additional shares.
For existing shareholders, participating in the rights issue allows them to protect against dilution and acquire additional shares at a significant discount.
