Eterna Plc has announced a N22-per-share rights issue aimed at raising approximately N21.5 billion to support the company’s expansion strategy and strengthen its capital position.
The capital programme forms a key component of Eterna’s long-term growth agenda as it seeks to enhance operational capacity across its core business segments.
The rights issue offers new ordinary shares to existing shareholders based on a defined subscription ratio approved by the company’s board and shareholders.
The capital raise is structured to give shareholders an opportunity to increase their holdings while enabling the company to secure funding for priority investments.
Eterna intends to deploy proceeds from the rights issue toward a range of strategic projects, including the expansion of its retail footprint, upgrades to manufacturing and processing facilities, and broader improvements to its distribution and logistics capabilities.
The company is also prioritising investments that support downstream infrastructure, aviation fuelling capacity, and liquefied petroleum gas assets, reflecting its integrated approach to the energy market.
In addition to capital investment, part of the funds raised will serve as operational working capital. This is expected to strengthen Eterna’s liquidity position, improve inventory financing efficiency, and provide a buffer against market volatility, particularly in an environment characterised by fluctuating foreign exchange rates and supply disruptions.
The announcement comes at a time when operators in Nigeria’s downstream oil and gas sector are navigating regulatory reforms, cost pressures, and competitive shifts within the market.
Eterna’s decision to raise additional capital underscores the company’s commitment to maintaining resilience, enhancing competitiveness and positioning itself for emerging opportunities amid structural transitions in the energy landscape.
Eterna’s board has expressed confidence that the rights issue will reinforce the company’s financial base and support its long-term growth trajectory.
The exercise is expected to provide the funding required to accelerate expansion plans and deliver improved value to shareholders as the company strengthens its role in Nigeria’s evolving downstream sector.