Ellah Lakes to refund applicants as N235bn share offer falls short

ELLAH Lakes Plc will refund subscribers after its N235 billion public share sale failed to secure the minimum level of participation required for share allotment.

The company disclosed on Friday that the capital-raising exercise did not meet the threshold stipulated in the offer terms, making it impossible to proceed with the issuance of shares. Consequently, all funds received from applicants will be returned following the procedures contained in the offer documents.

Ellah Lakes had announced on November 7, 2025, that it intended to raise N235 billion through the issuance of up to 18.8 billion ordinary shares. The offer opened three days later, on November 10, and was originally scheduled to close on December 5, 2025. In an effort to attract more subscriptions, the closing date was subsequently extended to December 19, 2025.

Despite the extended window, the level of investor participation remained below the required benchmark. The company nonetheless expressed appreciation to investors who showed interest during the subscription period and reaffirmed its commitment to clear and transparent communication with stakeholders.

In a separate update, the agro-based firm provided fresh details on its proposed acquisition of Agro-Allied Resources & Processing Nigeria Limited (ARPN) from ARPN PTE Ltd of Singapore. The deal, first disclosed on October 3, 2025, is still being finalised and remains subject to regulatory approvals and the satisfaction of certain conditions precedent. Completion is anticipated by the end of the first quarter (Q1) of 2026.

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Management said the acquisition, once completed, was expected to expand the company’s operational capacity, strengthen efficiency across its value chain, and enhance long-term value creation.

Chief Executive Officer, Ellah Lakes, Mr Chuka Mordi, noted that the company’s strategic priorities remained intact despite the unsuccessful offer. According to him, Ellah Lakes is focused on improving operational efficiency, maximising output from its plantations, and raising yield per hectare in the coming years.

He also stressed plans to broaden the company’s product portfolio and deepen vertical integration across its palm oil and cassava businesses as part of its growth agenda.

Mordi described the proposed ARPN transaction as an important step in the company’s transformation drive, adding that management was committed to executing the deal prudently and ensuring a suitable capital structure.

He expressed confidence that the acquisition would, upon completion, mark a significant turning point in the company’s growth trajectory and generate sustainable returns for shareholders.

Ellah Lakes’ financials

Ellah Lakes Plc recorded a 643 percent jump in revenue in the 17 months to December 2025, but a surge in foreign exchange (FX) losses and operating costs pushed the agro-allied firm deeper into the red, underscoring the financial strain of its aggressive expansion drive, Economy Post‘s analysis shows.

The company’s revenue rose from N19.746 million in 17 months to December 2024 to N146.658 million in the 17 months to December 2025. The company uses extended reporting periods following its financial year-end realignment in 2023.

Despite the triple-digit growth, the absolute increase was just N126.912 million, far too small to absorb the scale of cost increases recorded during the period.

Administrative expenses rose nearly N700 million to N1.203 billion in 2025, from N506.978 million a year earlier, while personnel costs climbed 27.2 percent to N1.190 billion from N935.6 million.

FX losses were the single largest hit on earnings. The company reported FX losses of N2.274 billion in 2025, up 55.4 percent from N1.463 billion in 2024, largely reflecting revaluation losses on foreign-currency obligations at a time when the naira weakened sharply.

Depreciation expenses also rose 26.4 percent to N6.076 million from N4.806 million, pointing to a higher asset base following new capital investments.

Altogether, while revenue grew by only N126.912 million, losses widened by about N1.76 billion over the period, meaning that cost growth outpaced income by a wide margin, making profitability impossible. Hence the company reported a net loss of N2.13 billion over the period.