Eterna Plc Offers Shares at Discount in ₦10bn Rights Issue
Eterna PLC, Nigeria’s leading integrated energy companies listed on the Nigerian Exchange (NGX), has officially launched a ₦10 billion rights issue aimed at strengthening its financial position, bolstering liquidity, and supporting strategic growth initiatives. The corporate action, which opened on January 12, 2026 and runs through February 18, 2026, marks a key capital-raising move for the company amid ongoing efforts to deepen its footprint across the downstream energy value chain.
Details of the Rights Offer
Under the terms of the offer, Eterna PLC is issuing 978,108,485 new ordinary shares at ₦22 per share representing a substantial discount to recent trading prices and providing existing shareholders with a compelling entry point. The issue is structured on a “3 for 4” basis, meaning eligible shareholders can subscribe for three (3) new shares for every four (4) ordinary shares held as of the qualification date of November 27, 2025.
According to regulatory filings, the rights entitlements are tradable on the NGX throughout the acceptance period, allowing shareholders flexibility in managing their participation through platforms like NGX Invest or via traditional participation forms submitted to issuing houses and receiving agents.
Why Eterna Is Raising Fresh Capital
Eterna says the funds will be used primarily to strengthen working capital and support expansion across key business segments, including fuel retailing, lubricants, LPG distribution, and aviation fuel operations. The company has also signalled that part of the proceeds will help reduce dependence on short-term borrowings, a move investors often view positively in a high-interest-rate environment.
According to the company’s board, the rights issue is designed to create a more resilient balance sheet while allowing Eterna to take advantage of growth opportunities in Nigeria’s downstream energy market.
Impact on Shareholders
For existing shareholders, the rights issue presents two clear options: participate or dilute. Those who take up their rights maintain their percentage ownership and gain additional shares at a discount, while those who do not may see their holdings diluted once the new shares are listed.
In the near term, earnings per share (EPS) may come under pressure due to the increased number of shares in issue. However, management believes that improved liquidity, lower finance costs, and expanded operations could support earnings growth over time, helping to offset dilution concerns.
The Bigger Picture for Investors
Eterna’s ₦10 billion rights issue appears to be less about survival and more about repositioning for sustainable growth. By opting for equity funding rather than additional debt, the company is prioritizing balance-sheet stability at a time when financing costs remain elevated.
For long-term investors, the key question is whether the capital raised translates into stronger cash flows and improved profitability in the coming quarters. If execution matches intent, the rights issue could mark a turning point in Eterna’s growth story.
In Conclusion: the offer provides an attractive entry point for shareholders who believe in Eterna’s expansion plans, while short-term traders may focus on price movements around the rights issue period.
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