Neimeth Targets N50bn Fresh Capital After N2.44bn Rights Issue

Neimeth International Pharmaceuticals Plc is seeking shareholders’ approval to expand its capital-raising mandate to N50bn, as the pharmaceutical company intensifies efforts to secure funding for its growth and strategic initiatives.

At its forthcoming 67th Annual General Meeting (AGM), the company will ask shareholders to approve an additional N30bn capital raise, which would be added to the unutilised balance of approximately N17.56bn from a previously approved N20bn fundraising programme.

The proposal follows the successful completion of a rights issue through which Neimeth raised about N2.44bn, leaving a balance of N17.56bn under the existing shareholder approval granted on June 23, 2025.

If approved, the new resolution will increase the company’s aggregate capital-raising approval to N50bn. With N2.44bn already raised, Neimeth would have an available fundraising capacity of approximately N47.56bn.

According to the notice of AGM, the Board of Directors is seeking authority to raise the additional N30bn through a combination of equity and debt instruments. These may include public offers, rights issues, private placements to strategic investors, commercial papers, bonds, convertible and non-convertible securities, medium-term notes, and other funding instruments.

The company said the fundraising programme could be executed in multiple tranches and on terms to be determined by the board, subject to approvals from relevant regulatory authorities.

As part of the proposed resolutions, Neimeth is also seeking shareholder approval for any future public offering or rights issue arising from the new capital raise to be underwritten on a standby basis. The arrangement is intended to ensure full subscription of such offers and strengthen the company’s ability to achieve its funding objectives.

The company further proposed that in the event of under-subscription during any rights issue, shareholders would waive their pre-emptive rights to unsubscribed shares. This would empower the board to allot the remaining shares to interested investors, as far as practicable, on the same terms offered under the rights issue.

In addition, shareholders will be asked to authorise the board to execute all agreements, appoint professional advisers, and undertake all necessary actions required to implement the fundraising programme.

The proposed authority would also enable the board to comply with directives from regulatory agencies and effect any consequential increase in the company’s issued share capital, including amendments to relevant provisions of the company’s Memorandum of Association upon completion of the capital raise.

The planned expansion of Neimeth’s fundraising capacity comes as pharmaceutical companies increasingly seek fresh capital to support capacity expansion, product development, technology upgrades, working capital requirements, and broader growth strategies in Nigeria’s evolving healthcare sector.

Industry analysts believe that the proposed N50bn capital-raising programme could provide Neimeth with greater financial flexibility to pursue long-term expansion opportunities and strengthen its position in the pharmaceutical market.