Neimeth Rises by 60.5% as Shareholders Approve Capital Raise
Rated as the top performer in the Nigerian Exchange, Neimeth International Pharmaceutical Plc’s market value increased sharply due to 60.5% positive price movement recorded in the equities market.
The pharmaceutical company has obtained approval to raise capital from the equities market; the signal triggered monster hunting for Neimeth in the market. The company is currently on track to reverse negative earnings performance.
The pharma company share price increased to N5.94 on Friday as 10.466 million units valued at N56.207 million exchanged hands in the market, from N3.70 at the beginning of the trading session last week.
The pharma-linked stock experienced an all-week rally, trading against the Nigerian Exchange index twice amidst market correction. Supported by positive sentiment, investors increased the value of Neimeth Plc.’s 4,273,104,608 shares outstanding to N25.382 billion.
As part of a special resolution at the annual general meeting, shareholders authorized Neimeth Board of Directors to raise additional capital of up to N20 billion or such amount as the directors may deem fit through an allotment of shares to be issued.
The shareholders approved the company to raise the amount by way of public offering, rights issue, strategic allotment, private/special placement, or through a combination of methods.
Neimeth seeks to reduce its share premium account by N2 billion, from N2,377,756,000, as part of capital restructuring. The amount is expected to be written off as accumulated losses.
The move to restructure capital becomes necessary as Neimeth seeks to eliminate deficits, improve its financial statement, and boost investors’ confidence. #Neimeth Rises by 60.5% as Shareholders Approve Capital Raise #
