Unilever Nigeria has scaled back the amount it planned to raise from shareholders via a rights issue to N1.96 billion ($5.39 million).
The household products maker, majority owned by Unilever, had planned to raise N63 billion through a rights issue and said in April it would ask shareholders to approve the share sale.
The company said yesterday it would issue 14 new shares to existing shareholders for every 27 held at N30 each, a 25.2 per cent discount to yesterday’s market price of N40.13.
It said the rights offer, which opened on Monday, would close on Sept. 8.
Unilever Nigeria was not immediately available to comment.
In July, the company reported a 238 percent rise in half-year pretax profit to 5.04 billion naira.
Unilever Nigeria shares, which have gained 13.3 percent so far this year, rose 0.86 per cent on the Lagos bourse yesterday. The stock fell 19.1 per cent last year.
Nigeria, Africa’s top oil producer, last year entered its first recession in 25 years, brought on by low oil prices, which have slashed government revenues and crippled dollar supplies in the country.