Neimeth Shares Soar Over 45% Following N20 Billion Capital Raise Approval at AGM

Neimeth International Pharmaceuticals Plc has recorded a surge of over 45% in its share price this week on the Nigerian Exchange following key decisions made at its 66th Annual General Meeting (AGM) held on Monday, June 23.

During the meeting, shareholders gave the green light for the company’s directors to raise up to N20 billion through share issuance, a move aimed at strengthening its financial position and supporting its growth plans.

In a notable development, shareholders were informed that N1.5 billion previously earmarked for constructing a new facility in Anambra has been redirected to expand Neimeth’s existing factory in Lagos. The company’s Chairman assured stakeholders that further updates on the project would be provided in due course.

The AGM also included the presentation of the company’s 2024 audited financials. Though Neimeth recorded a pre-tax loss of N854.4 million for the year, this marked an improvement from the previous year’s N1.6 billion loss. Revenue from pharmaceutical sales rose to N4.4 billion, offering some optimism. Momentum from these financial updates carried into the company’s Q1 2025 report, which posted a pre-tax profit of N115.7 million—an increase of 49%—driven by an 86% revenue jump. This positive outlook helped push Neimeth’s stock up by 10% on Monday, June 23, leading the gainers’ chart on the Nigerian Exchange. By the close of trading on Wednesday, June 26, the share price had climbed from N3.80 to N5.40, marking a weekly gain of 45.95%.

Neimeth began the year trading at N2.29 and closed January at N2.65. February brought continued gains, pushing the stock above N3. However, the rally slowed in March and remained mostly flat through April. In May, the upward trend resumed, and June saw steady progress. The stock’s rally accelerated significantly in the fourth week of June following the AGM resolutions. As of June 26, Neimeth has also achieved a month-to-date gain of 74%.

In addition to standard procedures like the adoption of financial statements, re-election of directors, and approval of remuneration, shareholders endorsed several major proposals. Directors were granted authority to raise up to N20 billion—or any amount deemed suitable—through various channels including public offerings, rights issues, strategic allotments, private placements, or a combination of these methods. A resolution was passed requiring every Non-Executive Director to hold fully paid-up shares amounting to at least 10% of the company’s share capital. This must be met either upon appointment or within 60 days of the rule taking effect. Shareholders also approved the reduction of the company’s Share Premium Account by N2 billion—from N2.38 billion to N377.76 million. The difference will be transferred to a Capital Restructuring Reserve Account to enhance financial flexibility.