Neimeth shareholders approve extra N30bn capital raise, total mandate hits N50bn
Shareholders unanimously approved an additional N30 billion capital raise at Neimeth's 67th AGM held virtually on Thursday, June 25, 2026, bringing total approved fundraising mandate to N50 billion. This builds on the N20 billion approved in June 2025, of which only N2.44 billion has been raised via rights issue so far.
The fresh authorization allows the board to raise funds via public offerings, rights issues, private placements, commercial papers, bonds, convertible securities, etc., with any public offering or rights issue to be underwritten on a standby basis. The capital will support the ongoing construction of a manufacturing plant in the South East and potential expansion into herbal remedies. Neimeth posted a pre‑tax profit of N1.34 billion for 2025 (versus a loss the prior year) and profit after tax of N976.4 million, while its share price rose 7.1% to N8.30 on the day of the meeting, up 43.1% year‑to‑date.
With the combined N50 billion mandate, approximately N47.56 billion remains available for deployment—well above the company’s current market cap of N35.5 billion, signaling potential dilution but also the capacity for aggressive growth. Investors should monitor how the board deploys the funds, watch for updates on the South East plant and product diversification, and consider the long‑term earnings accretion promised by management against near‑term dilution risks.