Forte Oil plans a 20 billion naira ($66 mln) share sale to institutional and high net worth investors and has applied for regulatory approval, it said on Monday.
The energy firm said the capital raising will be done as a public offer for shares through a book building process to help price discovery. It has applied to the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange for approval.
Forte said its core investor, Zenon Petroleum and Gas Limited, owned by billionaire Femi Otedola, with a total stake of 62.97 percent in the company, will not participate in the offer, it said in an email to Reuters.
Nigerian companies are going through a tough time brought on by low oil prices which tipped the economy into a recession, depleted the country’s foreign reserves, weakened the currency and caused chronic dollar shortages, frustrating businesses.
Several firms including Guinness Nigeria, reported losses last year due to the weak economy, and are set to raise funds from existing shareholders.
In 2016, Forte posted a 24 percent fall in pretax profit, which knocked it shares down 74.4 percent.
This year, the shares have fallen 34.2 percent, giving it a market value of 68.8 billion naira ($226 mln). It ended 4.98 percent down to 52.81 naira on Monday, under-performing the main index which gained 0.96 percent.