Neimeth International Pharmaceuticals Plc has concluded arrangements to commence its N3.67 billion right issue to the existing shareholders of the company in August.
The pharmaceutical company held a Completion Board Meeting to float a Rights Issue of N3.67 billion through the Nigerian capital market.
The Rights Issue which will commence on August 3, 2022, will be used to raise the sum of N3,679,618,625 at the cost of N1.55k per 50 Kobo share
The shareholders of the company had in March 2022 at the 63rd Annual General Meeting (AGM) approved the creation of 2,373,947,500 additional Ordinary Shares which will be allotted at the rate of five new shares for every four shares currently held in the company.
Dr. Ambrosie Orjiako Chairman of the Board said the money is being raised to construct a new multi-products facility that will be tailored to comply with the World Health Organisation (WHO) current standards of Good Manufacturing Practice (GMP) at Amawbia in Anambra State.
He noted that it will also be used to support the company’s strategic plan of maintaining a sustainable capital structure, leveraging the company’s balance sheet, reducing the cost of borrowing or finance costs, and funding working capital. Pharm Matthew Azoji, Managing Director/CEO said the capital market is the most viable and cheaper option to source long-term funds because of the high cost of funds through other sources.
“We cannot finance such long-term project as the new plant in Amawbia with short-term funds from banks.
“That will not be expedient and cost-effective.
“Orjiako said these projects will not only sustain the current upbeat performance of the company but will give her a quantum leap into the league of leading global health care commodities producers.”
Neimeth has taken an upward turn since 2018 when it returned to profitability after nearly a decade of predominantly losses. From a loss of N404.9 million in 2017 the Company made a profit of N166.4 million in 2018, N304.4 million in 2019, and N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million in 2021,” he said.
Orjiako said the Board is working with Management to ensure that the growth trajectory is sustained.
Last year, the shareholders approved a two-pronged expansion plan, namely the construction of a new plant in Anambra State and a facility upgrade of the Oregun plant.
The Oregun factory upgrade is already close to completion with funds from the Bank of Industry (BOI) and its own resources. On completion, the Oregun plant alone will add an additional 300 per cent to the company’s production capacity.
Following the growth trajectory, the share price of Neimeth increased 343 per cent from 40 kobo as of September 30, 2019, to N1.77 as of March 14, 2022.
Between 2012 and 2021 the Earnings Per Share of Neimeth grew 280 per cent from negative 5kobo to 14 kobo per share.The right issue could also be a reason for the rise in share price.
IATF2023 records $43.8bn closed deals
The African Export-Import Bank has disclosed that the third Intra-African Trade Fair (IATF2023) held in Cairo from 9 to 15 November witnessed the conclusion of business deals and transactions valued at US$43.8 billion.
In the final tallies released in Cairo, the organisers of the continental event said that the amount represented the value of 426 deals concluded in 21 sectors covering 52 countries. At a press conference to announce the results, Executive Vice President (Intra-African Trade Bank) at Afreximbank, Mrs Kanayo Awani, also announced that 130 countries participated in the trade fair, which attracted 1,939 exhibitors and 28,282 participants who attended physically and through the IATF virtual platform.
One of the notable transactions included the Export Agriculture for Food Security Framework executed by several African countries (as Origin Countries) and ARISE Integrated Industrial Platforms, Arise IIP (as Anchor Investor) to which Afreximbank committed US$2 billion to boost production, processing, and intra-African trade in agricultural products and to provide African farmers and agribusinesses with opportunities to access larger markets across the continent.
Mrs Awani also said that the IATF had successfully established itself as the premier trade and investment event in Africa, with the unique capacity to increase intra-African trade and investment, especially in the context of implementing the African Continental Free Trade Area (AfCFTA) Agreement.
“Building on the successes of IATF2018 and IATF2021, I am proud to say that the buzz and energy generated by IATF2023 will be felt across Africa and beyond for many years to come. Together, we have explored new possibilities and opened new doors for a brighter future for our continent,” she added.
IATF2023 kicked off on 9 November and included an official opening ceremony, a Presidential Summit which was addressed by President Abdel Fattah Al Sisi of the Arab Republic of Egypt, a Trade and Investment Forum, the Creative Africa Nexus (CANEX), an African Auto Forum, AU Youth Entrepreneurship Programme, a Sub-Sovereigns Conference, a Diaspora Summit, an African Industrialization Week and an African Tourism Sustainability and Investment Forum. A series of side events were also held as part of the trade fair.
The next edition of the IATF will be hosted in 2025 by Algeria.
Investors record positive gains, as NGXASI advance by 0.43%
Investors yesterday recorded positive gains on the Nigerian equities market following Monday’s losses.
According to data obtained from the Nigerian Exchange Limited (NGX) website, the NGX Market CAP recorded a gain of N165.99 billion in Naira terms.
The NGX All-Share Index (NGXASI) also advanced by 0.43 percent, closing at 71,250.17 basis points, compared to the previous day’s loss of 0.66 percent, which closed at 70,946.83 basis points. With the growth, the NGXASI now stands at 39.02 percent.
The total volume traded also advanced by 20.93 percent to close at N433.57 million, valued at N11.11 billion and traded in 7,016 deals.
The Gate Index closed flat at 183.36, while the Toni index advanced by 0.27 percent to close at 375.28 basis points.
At the close of trading, the market recorded 40 gainers, 15 losers, and 64 unchanged. NSLTECH topped the gainers list, while ABBEYBDS topped the list of losers.
UACN was the most traded stock by volume with N61.71 million, while NIDF was the most traded stock by value with N2.22 billion units traded.
UACN also had the highest volume contribution with 14.23 percent, while UBA and GTCO followed closely.
According to the value chart, NIDF is at the top with a 20.0 percent contribution. AIRTELAFRI and MTNN followed closely behind.
SEC DG calls for multifaceted approach to enhance capital market growth
The Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has called for a multi-faceted approach to enhance the growth of Nigeria’s capital market.
The SEC DG made this known while addressing journalists at the 2023 conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) held in Lagos at the weekend.
According to Yuguda who was represented by the Executive Commissioner Operations, SEC, Mr Dayo Obisan, “Effectively harnessing the capital market for national development entails a multi-faceted approach, these include deploying more infrastructure, fostering more public-private partnerships, establishing specialised entities like special purpose vehicles (SPVs), listing state-owned enterprises, issuing green bonds to support sustainable projects, and bolstering small and medium enterprises among others.”
According to him, the revised capital market master plan underscored SEC’s commitment to deepening and. repositioning the financial market as a key driver of sustainable economic growth.
“The master plan which represents collective aspirations of the capital market community is focused on driving initiatives geared towards growing and deepening the market with the ultimate goal of accelerating the emergence of our dear country in the top 20 economies by the year 2025,” Yuguda said.
The SEC DG added that synergy holds the potential of unleashing capital market prowess and paving the way for a prosperous future.
According to him, achieving the objective necessitates an increased utilisation of market mechanisms and instruments to raise funds and stimulate economic advancement.
He pointed out that the commission would continue to introduce new ideas and policies that would support the development and regulation of a capital market that is dynamic, fair, transparent, and efficient to contribute to the nation’s economic development, noting that investors protection plays a crucial role in the development and integrity of the capital market.
Also speaking at the event, the Deputy Director, SEC Lagos Zonal office, Mr John Briggs, urged the government to create infrastructure financing instruments that would facilitate easy servicing of obligations.
“We have encouraged a lot of infrastructure funds like sukuk, and green bonds and we are even talking about blue bonds to develop the market.”
“The capital market has created the conducive environment to ensure a transparent and dynamic market which would continue to attract investment,” he said.
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