Key points:
- Fidson Healthcare, a leading Nigerian pharmaceutical manufacturing company, plans to raise additional capital of up to $12.9 million (N20 billion) at its 25th Annual General Meeting (AGM) on July 4.
- Major shareholders as of December 31, 2023, include Fidelis Ayebae (33.05 percent ownership) and Stanbic IBTC Nominee Limited (24.67 percent ownership).
- Fidson Healthcare signed a cooperation agreement with Jiangsu Aidea Pharmaceutical Company Limited to address medical challenges, particularly HIV treatment in Nigeria.
Fidson Healthcare Plc, a leading Nigerian pharmaceutical manufacturing company led by Fidelis Ayebae, an accomplished banker turned pharmaceutical tycoon will seek shareholders’ approval to raise additional capital of up to N20 billion at its forthcoming 25th Annual General Meeting (AGM) in Lagos on July 4.
The directors of the healthcare company intend to issue shares through various methods, including public offerings, rights issues, strategic allotments, private placements, or a combination of these methods, subject to terms determined by the directors.
As per the register of members as of Dec. 31, 2023, major shareholders include Fidelis Ayebae with 33.05 percent (758,543,749 units) and Stanbic IBTC Nominee Limited with 24.67 percent (568,422,033 units) of the issued share capital.
Fidson Healthcare’s principal activities involve the manufacture and distribution of pharmaceutical products, including drugs, infusions, and injectables. The company began local manufacturing in July 2002 and transitioned from a Private Limited Liability Company to a Public Limited Liability Company on June 5, 2008. Its shares are currently quoted on the Nigerian Exchange (NGX).
In a plan to enhance the healthcare landscape in Nigeria and Africa, Fidson Healthcare signed a cooperation agreement with Jiangsu Aidea Pharmaceutical Company Limited on Nov. 13, 2023. The agreement, signed in Yangzhou, China, aims to tackle medical challenges, particularly the treatment of over 1.9 million HIV-infected people in Nigeria, using innovative drugs.
As of June 3, the company’s market capitalization stood at N34.195 billion, with 2,294,996,275 shares outstanding. Fidson Healthcare maintains a free float percentage of 33.54 percent and a free float value of N4.224 billion, complying with NGX’s free float requirements for companies listed on the Main Board.
The company’s share price closed at N14.90 per share on June 3, approaching its 52-week high of N19.2, compared to a 52-week low of N9.85. Despite a 14-percent decrease in profit to N3.607 billion for the year ending Dec. 31, 2023, revenue increased by 31 percent to N53.050 billion. However, earnings per share (basic and diluted) dropped by 14 percent to 157 kobo.
This proposed capital raise aligns with Articles 4 and 29 of the company, the Companies and Allied Matters Act, 2020, and requires approval from the Securities and Exchange Commission (SEC) and compliance with NGX Listing Rules.
Additionally, Fidson Healthcare will seek shareholder approval at the AGM to pay a dividend of 60 kobo per share, totaling N1.376 billion. If approved, dividends will be paid on July 5 to members listed in the Register of Members as of June 18, via electronic transfer as directed by the SEC.
