By Udeme Ekwere

Neimeth International Pharmaceuticals Plc has concluded plans to raise N1.2bn from the Nigerian Stock Exchange.

This followed the approval given by the shareholders of the company at its annual general meeting held in October 2010.

The Board of Directors and the management of the company had got approval of shareholders to increase the company’s authorised share capital from N750m to N1bn, through the creation of 500 million ordinary shares of 50 kobo each.

The fresh capital will be raised through a rights issue. Specifically, the company is offering a rights issue of 821.57 million ordinary shares of 50 kobo each at N1.50 per share to existing shareholders.

According to the prospectus of the offer, the issue, which opens next Tuesday and closes on November 4, 2011, will be on the basis of one new ordinary share for every one ordinary share held by shareholders as at February 28, 2011.

Speaking at the company’s Completion Board Meeting on Tuesday, its Chairman, Dr. Ambrosie Orjiako, said that the shares being offered were tradable on the floor of the NSE for the duration of the issue.

According to him, the future of Neimeth Plc remains bright because it provides essential services and good products.

He said, “We are a company that provides essential services to Nigeria. Thus, our products will always be in high demand by Nigerians. Thus, we are sure that the offer would be a successful one, even despite the ongoing lull in the Nigerian capital market.

“It is important to note that the shares of Neimeth, like most other companies on the NSE, are currently selling at a price far below their real value. So, we are certain that the shareholders would be interested and attracted to the issue and subscribe.”

He attributed the present slide in the nation’s capital market to the global trend, expressing confidence that shareholders would take advantage of the low price of the issue to take up the issues.

Orjiakor noted that the pharmaceutical industry in Nigeria held a lot of promise, adding that it was important for the government to embark on the fulfillment of most of the promises made towards boosting the industry.

He said, “In the light of the enabling economic and political environment occasioned by improving Nigeria’s external relations and image and the intensified effort of the health regulators at curtailing the unfair competition posed by dumping of sub-standard drugs in Nigeria, the nation’s pharmaceutical industry will enjoy sustained growth.

“There is the pressing need for government to move from oratory to solid commitment if these benefits are to be seen in the near future. And there is the need for an effective health care solution for the growing medical needs in the economy.

Source: Punch