Eterna Plc said it has commenced a N21.52 billion rights issue following approval from the Securities and Exchange Commission (SEC), as the energy company seeks to fund expansion and strengthen its balance sheet.
In a notice to the Nigerian Exchange Limited (NGX), the company said the offer comprises 978.11 million ordinary shares of 50 kobo each priced at N22 per share, to be issued to existing shareholders based on three new shares for every four ordinary shares held as at November 27, 2025.
The company noted that the rights issue opened on Monday, January 12, 2026, and will close on Wednesday, February 18, 2026, with the rights tradable on the floor of the NGX throughout the acceptance period.
According to the disclosure, the rights circular will be distributed to shareholders by Greenwich Registrars and Data Solutions Limited, while the document is also available on the company’s website.
The capital raise occurred when the company’s operating performance had not translated into strong liquidity, despite improving revenue growth. The company’s cash and cash equivalents declined sharply to about N338 million as at September 2025, from over N1.6 billion at the end of 2024, even though it generated more than N13 billion in operating cash flow over the nine months.
The offer follows Eterna Plc’s strong financial showing in Q3’25 & 9M’25 with a revenue of N55.2 billion in Q3 and N212.8 billion over the nine months. Despite an industry-wide decline in margins, Eterna recorded a profit before tax of N1.39 billion.
Read also: Eterna commences N21.52bn Rights Issue in fresh capital raise
The right issue stands as a rebalance to improve the company’s capital structure, which remains tilted towards borrowing, which stood at N38.6 billion compared with shareholder liquidity of N5.18 billion. Funding expansion through equity rather than additional loans is expected to ease refinancing risks and reduce pressure from rising interest costs, particularly in a volatile downstream energy market.
Eterna said shareholders may participate in the offer through the NGX Invest platform or by completing participation forms and submitting payment evidence to the issuing houses or receiving agents listed in the circular before the close of the offer.
Speaking on the development, Gabriel Ogbechie, chairman of the Board, said, “This right issue marks a significant step forward in our long term strategy to consolidate Eterna’s leadership position in the downstream energy sector. It will enable us to pursue growth opportunities across our value chain while delivering sustained value to our shareholders.’’
The company explained that proceeds from the rights issue will be deployed to support the expansion of its retail network, upgrading of its lubricant blending plant, enhancement of LPG retail assets, acquisition of commercial delivery assets, expansion of aviation fueling operations, and investment in ESG-related projects.
The disclosure signed by David Edet, the company secretary, added that the rights issue provides existing shareholders with an opportunity to increase their equity holdings while supporting the company’s long-term growth strategy.