Eterna Plc, a frontrunner in Nigeria’s power sector, has introduced a N21.518 billion rights situation, providing 978,108,485 new Strange Shares at a set value of N22.00 per share.
This provide is made on the premise of 3 new shares for each 4 shares held by shareholders as of the shut of enterprise on November 27, 2025.
The Rights Concern opened on January 12, 2026, and can shut on February 18, 2026.
Key particulars of the provide
- Qualification date value: N35.50 per share
- Present market value: N32.00
- Proper Concern value: N22.00
- Low cost to qualification date value: N13.50 (38%)
- Submit-rights reference value: N29.71.
This discounted provide presents a vital alternative for Eterna’s current shareholders to extend their stakes at a extra engaging valuation in comparison with the market value on the qualification date.
The N21.518 billion raised from the Rights Concern is anticipated to be allotted as follows:
- N11 billion (52.291%) for strategic enterprise enlargement
- N10.036 billion (47.71%) for operational working capital
About Eterna Plc
Eterna Plc is listed on the Nigerian Alternate (NGX).
The corporate manufactures and distributes lubricants and chemical compounds, trades crude oil, and operates a rising community of filling stations.
It additionally plans to increase into the midstream and upstream segments of the power sector.
Eterna operates a world-class lubricants mixing plant with a state-of-the-art laboratory, producing Castrol and Eterna-branded merchandise for Nigeria and the broader West African market.
The corporate has additionally expanded its fuels and advertising and marketing infrastructure, together with a 34-million-litre coastal tank farm in Lagos, an aviation gasoline depot close to Nnamdi Azikiwe Worldwide Airport, Abuja, and a rising variety of filling stations nationwide.
How the Rights Concern may influence Eterna
The N21.518 billion rights situation supplies Eterna Plc with a well timed alternative to restructure its stability sheet, significantly by addressing its elevated debt ranges and tight liquidity place.
As of September 2025, the corporate’s debt-to-equity ratio stood at about 7 occasions, highlighting the extent to which finance prices proceed to weigh on earnings.
A portion of the proceeds is anticipated to be utilized to debt discount, which ought to ease curiosity bills and enhance earnings high quality over time.
Whereas this may occasionally not instantly translate into a pointy bounce in profitability, it reduces stability sheet danger and improves the sustainability of future earnings.
The enlarged share base following the rights situation will result in near-term dilution of earnings per share.
Nonetheless, administration’s projections recommend that the influence of dilution may very well be partly offset by decrease finance prices and improved working effectivity.
For context, full-year 2025 revenue is forecast at round N1 billion, translating to an estimated 77 kobo per share, whereas projected first-quarter 2026 earnings of N485 million suggest an EPS of about 21 kobo, even after accounting for the further shares.
Shareholders takeaways
- For current shareholders, this supplies a chance to improve publicity at a considerably decrease value and scale back the typical value of their holdings.
- Utilizing many of the N21.518 billion to scale back debt and enhance working capital ought to decrease Eterna’s monetary danger. With borrowings nonetheless excessive, paying down debt will scale back curiosity prices and make earnings much less risky.
- The rights situation does dilute EPS, however the influence is measurable and never harmful. After the problem, earnings are unfold over a a lot bigger base. By itself, this could decrease EPS. Nonetheless, administration’s earnings projections recommend the dilution is largely absorbed by earnings:
Bottomline
For shareholders with a medium-term outlook, taking part within the rights situation helps shield in opposition to dilution and permits further shares to be acquired at a vital low cost.
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