• Thursday, June 13, 2024
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Here’s what to know as Fidson eyes N20bn capital raise

Here’s what to know as Fidson eyes N20bn capital raise

…to seek shareholders approval

Fidson Healthcare Plc will at its forthcoming 25th Annual General Meeting holding in Lagos on July 4 seek the approval of its shareholder for the directors to raise additional capital of up to N20billion.

This amount as the directors of the healthcare company may deem fit will be through an allotment of shares to be issued whether by way of a public offering, rights issue, strategic allotment, private/special placement of shares or through a combination of methods, subject to terms and conditions to be determined by the Directors.

According to the register of members as at December 31, 2023, the following held more than 5percent of the issued share capital of the Company: Fidelis Ayebae (758,543,749 units or 33.05percent), and Stanbic IBTC Nominee Limited (568,422,033 units or 24.67percent).

The principal activities of the Company are the manufacture and distribution of pharmaceutical products which include drugs, infusion and injectables.

The Company commenced local manufacturing of pharmaceutical products in July 2002. It operated as a Private Limited Liability Company until June 5, 2008 when it was registered as a Public Limited Liability Company. The shares of Fidson Healthcare are currently quoted on the floor of the Nigerian Exchange Limited (NGX).

In a bid to further add value to the healthcare landscape in Nigeria and Africa, Fidson Healthcare and Jiangsu Aidea Pharmaceutical Company Limited an innovative pharmaceutical company in China on Monday November 13, 2023 signed a strategic cooperation agreement with Yangzhou, China. The agreement aims to promote and address medical challenges through the use of innovative drugs especially in the treatment of over 1.9million HIV-infected people in Nigeria.

The company’s market capitalisation stood at N34.195billion on Monday June 3 while its shares outstanding are 2,294,996,275 units.

Fidson Healthcare Plc with a free float percentage of 33.54percent as at December 31, 2023 is compliant with the Exchange’s free float requirements for companies listed on the Main Board.

The company also with a free float value of N4.224billion as at December 31, 2023 is compliant with the Exchange’s free float requirements for companies listed on the Main Board.

At N14.90kobo per share the stock closed on Monday June 3 at the Nigerian Exchange Limited (NGX), it nears its 52week high of N19.2 as against 52 week low of N9.85.

Last 7 days trade

The company’s annual report and financial statements for the year ended December 31 showed its profit for the year decreased by 14percent to N3.607billion from 2022 high of N4.187billion.

This is despite revenue increase by 31 percent in the review year to N53.050billion from 2022 low of N40.634billion. The company’s earnings per share (basic and diluted) dropped by 14percent to 157kobo from 182 kobo in 2022.

This planned additional capital raise by Fidson Healthcare Plc is pursuant to the provisions of Articles 4 and 29 of the company, provisions of the Companies and Allied Matters Act, 2020 and subject to the approval of the Securities and Exchange Commission (SEC) and compliance with the Listing Rules of the Nigerian Exchange Limited (NGX).

Also, at the annual general meeting holding next month, Fidson Healthcare Plc will seek its shareholders approval to pay a dividend of 60 kobo per share amounting to N1.376billion.

If the dividend recommended by the Directors is approved by members at the Annual General Meeting, payment would be made on Friday July 5 to members whose names appeared in the Register of Members at the close of business on June 18.

In line with the directives of the Securities and Exchange Commission to pay dividends electronically by direct credit to the bank accounts of shareholders, the dividend would be paid accordingly, according to the notice of the meeting at the Nigerian Exchange Limited.