Nigerian waste management company to raise US$7M in hybrid share offer

NIGERIA – Nigerian waste management company The Initiates Plc (TIP) is set to close its hybrid share offer on 12 December 2025, targeting NGN 10.1 billion (US$7 million) in capital.

The offer combines a rights issue for existing shareholders and a public offer, both of which opened on 5 November.

Founded in 1995 and listed on the Nigerian Exchange (NGX) in 2016, TIP has over 30 years of experience in hazardous and non-hazardous waste management, industrial cleaning, environmental consultancy, and pollution control.

The company primarily serves the oil and gas sector and has operations in Uganda and Namibia, giving it a growing regional footprint.

The public offer includes just over 932 million ordinary shares priced at NGN 9.50 per share, aimed at raising NGN 8.85 billion (US$6.1 million).

The rights offer allows existing shareholders to acquire nearly 178 million shares at NGN 7 each, raising an additional NGN 1.2 billion (US$0.85 million).

The shares carry a nominal value of NGN 0.50, with applications required in multiples of 1,000 shares.

If fully subscribed, the offer is expected to double TIP’s market capitalization from NGN 8.5 billion (US$5.85m) to NGN 17.3 billion (US$11.91m) at the offer price.

According to Business Day, the capital raise is intended to expand operations, acquire modern waste management equipment, invest in innovative technologies, and enhance operational efficiency across Nigeria and Sub-Saharan Africa.

Key investments include a US$1 million rotary kiln incineration plant, two US$1 million thermal desorption plants, and additional robots, skips, trucks, and a wastewater treatment unit.

TIP has been one of the top performers on the NGX in 2025, starting the year at NGN 2.50 and climbing to NGN 14.60 by September, before settling at NGN 11.50 on 7 December.

NGX CEO Jude Chiemeka highlighted the company’s strong growth and ambition to move to the main board, emphasizing its successful utilization of capital markets since its 2016 listing.

TIP identifies growth opportunities driven by stricter environmental regulations, rising demand for professional waste management, and expanding manufacturing, construction, and energy sectors.

The company also sees potential in Uganda, Ghana, Cameroon, and Côte d’Ivoire, aligning with Nigeria’s push for waste recycling, green compliance, and public-private partnerships (PPP).

The hybrid offer is being managed by Anchoria Advisory Services, with Fundvine Capital & Securities serving as joint issuing house. Allocation statements are expected on 14 January 2026, with listing of the new shares on the NGX slated for 23 February 2026.

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