In a significant move to fuel its ambitious growth plans, Fidson Healthcare Plc has unveiled a strategy to raise N21 billion through a rights issue. The pharmaceutical giant made the announcement at a formal signing ceremony held at its Lagos head office, marking a pivotal step in its expansion agenda, pending final regulatory nods.
Details of the N21 Billion Rights Issue
The capital raise involves the creation of 600 million new ordinary shares, each with a nominal value of 50 kobo, offered at a price of N35 per share. The offer is structured to favour existing shareholders, who will be given the opportunity to purchase one new share for every four shares they currently hold. The qualification date for this entitlement has been set as 12 November 2025.
Company executives stated that the decision to pursue this funding route is backed by Fidson's robust financial health. For the nine-month period ending 30 September 2025, the company posted impressive results, including a 132% year-on-year surge in profit after tax to N7.97 billion. Revenue also saw substantial growth, climbing 56% to N93.08 billion, while operating profit increased by 92% to N16.95 billion.
Strategic Use of Proceeds and Leadership Insight
The primary objective of the capital injection is to consolidate Fidson's domestic market leadership and finance its pan-African growth strategy. The funds are earmarked for critical areas:
- Scaling up manufacturing capacity.
- Driving innovation across product lines.
- Expanding market reach into new territories.
At the ceremony, the Managing Director/CEO, Biola Adebayo, described the rights issue as a major milestone. He emphasized that the additional capital would "reinforce our leadership in Nigeria as well as strengthen our footprint across Africa." Adebayo linked the move to the company's strong performance, which showcases its capacity for sustainable growth and value creation for shareholders.
The Finance Director, Imokha Ayebae, assured that the offer was designed to be financially attractive. He noted that the raised capital would be deployed prudently to optimise operations, including technology upgrades and product line expansion. Ayebae encouraged all eligible shareholders to participate fully during the offer period.
Market Confidence and Shareholder Action
Michael Nzewi, CEO of the lead issuing house, CardinalStone Partners Limited, highlighted Fidson's remarkable growth trajectory. He pointed out that the company's previous equity offering in 2019 was priced at N4.50 per share, a stark contrast to the current N35 offer price, reflecting enhanced investor confidence and the firm's elevated market standing.
Fidson has advised shareholders on its register as of the qualification date to complete the official participation forms and submit them, along with full payment, through their stockbrokers or designated receiving agents before the closing date. The company reaffirmed its commitment to strengthening pharmaceutical manufacturing through continuous innovation, workforce development, and delivering sustained value to all stakeholders.
