KEY POINTS
- The Eterna rights issue aims to raise $14.9 million.
- Shareholders will receive a three-for-four offer.
- The move marks a new phase under Gabriel Ogbechie.
Eterna Plc has opened a N21.5 billion ($14.9 million) rights issue as the downstream player moves to reinforce its balance sheet and position itself for broader expansion. The offer marks one of the company’s largest capital pushes since new leadership took full control and set a fresh course for growth in Nigeria’s changing energy market.
Eterna rights issue signals capital push
The fundraising covers 978,108,485 ordinary shares at N22 each, which places the expected proceeds at N21.52 billion. The transaction was confirmed at a signing event held on Dec. 2, sealing months of preparation since shareholders approved the plan in July 2025. The company is pitching the offer as a chance to give long-term investors the room to support a more ambitious operational strategy.
Under the terms, shareholders can take up three new shares for every four they held as of Nov. 27. The subscription window opens on Jan. 12, 2026 and will close on Feb. 18, giving holders several weeks to make their decisions. Company officials say the timing is structured to ensure that every investor gets the same opportunity to participate in the Eterna rights issue without pressure from tight deadlines.
Eterna began in 1989 as a small petroleum-products business. It has since grown into a company with interests across lubricants, chemicals, crude trading and retail operations. The shift in direction accelerated after Rainoil Ltd., owned by oil magnate Gabriel Ogbechie, took a controlling stake in 2021. Ogbechie now holds 62.82 percent and guides the company’s long-term strategy. His influence has shaped new plans to move deeper into the wider energy value chain. These options include selective entry into midstream and upstream activities, which remain under review as the company waits for clearer regulations and more stable market conditions.
Profit rebound strengthens Eterna rights issue
According to Billionire Africa, the new shares will rank equally with the company’s existing stock. The rights issue follows a strong rebound that began last year. Revenue rose 71 percent to N313.6 billion ($217 million) in 2024, reversing a loss in 2023. Profit before tax reached $3.1 million, which marked a sharp break from the $8.28 million loss posted the previous year.
The momentum has carried into 2025. First-half revenue climbed to N157.65 billion ($103.9 million), up from N147.53 billion in the same period of 2024. Net profit rose to N573.81 million ($0.4 million), a shift from the N4.84 billion loss recorded a year earlier. The company also booked a small FX gain of N13 million ($9,000), compared with a N14.46 billion FX loss in the previous first half. The improvement gives Eterna some relief as it raises fresh capital to fund expansion.
