Neimeth International Pharmaceuticals Plc has officially commenced trading on its N2.44 billion rights issue on the Nigerian Exchange (NGX), marking a significant step in its ongoing capital restructuring and growth repositioning strategy. The offer, priced at N4.00 per share, is designed to strengthen the company’s balance sheet while giving existing shareholders the opportunity to maintain their equity positions.
The development was confirmed in a regulatory bulletin issued by NGX Regulation to dealing members, signalling the formal opening of the transaction window, which began on Monday, April 27, 2026.
Structured capital raise to support expansion
Under the arrangement, Neimeth is offering 610,443,515 ordinary shares of 50 kobo each, on the basis of one new share for every seven shares held as of the qualification date, February 2, 2026. This structure ensures proportional participation, allowing shareholders who fully subscribe to preserve their ownership stake in the company.
At the offer price of N4.00 per share, the rights issue is expected to inject approximately N2.44 billion into the company. Management has indicated that proceeds will be directed toward operational strengthening, working capital support, and expansion of production capacity in response to growing demand in Nigeria’s pharmaceutical sector.
A dedicated rights trading code has also been introduced on the NGX, allowing shareholders to trade their entitlements within the offer period.
Discounted pricing aimed at boosting participation
One of the most notable features of the offer is its pricing strategy. The rights issue price of N4.00 represents a substantial discount compared to the prevailing market price of about N9.00 per share as of April 28, 2026. This gap is widely interpreted as a deliberate incentive to encourage strong investor uptake and ensure full subscription.
However, investor response is expected to depend largely on confidence in the company’s recovery trajectory, as well as broader market sentiment. The relatively short subscription window, scheduled to close on May 25, 2026, may also influence participation levels among shareholders.
Financial turnaround strengthens investor narrative
The capital raise comes at a time when Neimeth is reporting a notable improvement in its financial performance, reinforcing optimism around its turnaround story.
For the financial year ended December 31, 2025, the company posted a pre-tax profit of N1.49 billion, a sharp reversal from a loss of N854.43 million recorded in 2024. This recovery was supported in part by a foreign exchange gain of N48 million, compared to a foreign exchange loss exceeding N2 billion in the prior year.
Quarterly performance also reflected the turnaround momentum, with profit before tax rising to N1.15 billion in Q4 2025, compared to a loss of N1.16 billion in the corresponding period of 2024.
Market performance has mirrored this improvement. The company’s share price closed at N9.25 on April 28, 2026, representing a year-to-date gain of 59.5% from N5.80 at the start of the year.
Strategic recapitalisation amid economic pressures
Beyond immediate funding needs, the rights issue is seen as part of a broader strategic effort to reinforce Neimeth’s operational resilience amid persistent macroeconomic pressures, including inflationary cost trends, foreign exchange volatility, and supply chain constraints affecting the pharmaceutical sector.
By strengthening its capital base, the company aims to sustain its recovery trajectory, improve production efficiency, and position itself more competitively within Nigeria’s healthcare and pharmaceutical market.
Overall, the offer reflects a calculated effort to balance shareholder value preservation with urgent recapitalisation needs, while leveraging improved financial performance to restore long-term investor confidence.