By Ogbuotobo Chuks

The much awaited offer of Eterna Oil & Gas Plc is finally here. Shareholders of Eterna Oil & Gas Plc yesterday unanimously approved a proposal by the board of directors to raise N1.4 billion from the primary market through a rights issue involving 150 million ordinary shares of 50 kobo each at N9.95 per share.

The rights would be allotted on the basis of three new ordinary shares for every 10 ordinary shares of 50 kobo each held as at March 30, 2007. The offer opens on Monday May 14 and closes on June 11, 2007.It is being put together  by Sterling Capital Markets Limited and Vetiva Capital Management Limited.

According to the prospectus, the offer is being undertaking to acquire a coastal petroleum tank farm, retail outlet development and construction, and provide additional working capital needed to drive the planned business expansion.

If fully subscribed, the board intends to expand N750 million or 53.61 per cent on a tank farm in Apapa, Lagos, while retail outlets development gets 28.59 per cent or N400 million, and the remaining 17.80 per cent or N248.96 million.

The Managing Director of Sterling Capital, Mr. Biodun Dabiri said the offer is as good as fully subscribed because existing investors are willing to take up their rights in full due to the potential of the company.

The Managing Director of Vetiva Capital Management Limited, Mr. Chuka Eseka, also said the proceeds of the offer will help to expand the operations of the company and enhance its competencies.

The share price of the company has appreciated by over 200 percent this year before it was placed on technical suspension.

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