Neimeth International Pharmaceuticals Plc (NGX: NEIMETH) has commenced trading on its rights issue, offering existing shareholders the opportunity to acquire additional shares at a discounted price as part of its capital-raising effort.
The development was disclosed in a market bulletin issued by NGX Regulation Limited on April 27, 2026. The notice, signed by Godstime Iwenekhai, Head of the Issuer Regulation Department, confirmed the activation of the rights trading code and the commencement of the offer.
According to the bulletin, the company is offering 610,443,515 ordinary shares of 50 kobo each at a price of N4.00 per share. The offer is structured on the basis of one new ordinary share for every seven shares already held by investors as of the qualification date, February 2, 2026.
The rights issue price of N4.00 represents a significant discount to the company’s current market price of N8.10 per share. This pricing implies that eligible shareholders can acquire new shares at roughly half the prevailing market value, creating an incentive to take up their rights. It also reflects a common strategy by issuers to encourage participation and ensure the success of the offer, while potentially enhancing shareholder value for those who subscribe.
Trading in the rights opened on April 27, 2026, and is scheduled to close on May 25, 2026. The rights are listed under the symbol RR26NEIMETH, allowing shareholders to either take up their entitlements or trade them on the market within the offer period.
The registrar to the issue is Meristem Registrars and Probate Services Limited, which will oversee the processing and allotment of shares upon completion of the exercise.
The rights issue is expected to strengthen Neimeth’s capital base and support its ongoing business operations, as the company positions itself for growth in Nigeria’s pharmaceutical sector.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
