By PETER EGWUATU

NEIMETH International Pharmaceuticals Plc has concluded arrangement to raise N1.23 billion from the Nigerian capital market by way of rights issue.

The Board of Directors of Neimeth Pharmaceuticals and parties to the issue on Tuesday at the completion board meeting held in Lagos signed the offering documents.

In an interaction with capital market correspondents, Managing Director/CEO, Meristem Securities Limited, Mr.Wole Abegunde revealed that Neimeth is about to make history in the capital market as it becomes the first listed company to float an offer above its current market price.

According to him, “ Neimeth shares is currently under valued in the secondary market given the remarkable achievement recorded by the company. The company has very impressive financial performance indicators and the offering price will definitely correct the market price at the secondary market.”

Meristem Securities boss, the Issuing House to the offering said, “ We are confident that the offering would be fully subscribed as shareholders are already aware that Neimeth share is undervalued. This is a signal to the market that the company has great potentials as there is difference between price and value.”

Similarly, Chairman of Neimeth Pharmaceuticals, Dr. Ambrose Orjiako disclosed that the company’s purpose to float the rights issue is to enhance its working capital and pursue its turnaround programme.

Other purpose according to him include to pay-off offshore bond as well as finance its new products to be launched soon.

According to him, “ Neimeth is floating 821,576 ordinary shares of 50 kobo each at N1.50 per share and the offer has been scheduled to open on 27th September, 2011 to close at February 28, 2011.”

It will be recalled that in 2007/2008, financial year, the company issued N420 million (400 million Japanese Yen zero coupon Bonds due 2014 (but recallable in January , 2010) with options to subscribe for ordinary shares of the company by Daewoo Securities (Europe) Limited.