By Comfort Asemota
Lagos, Nigeria – Nigeria’s leading pharmaceutical manufacturer, Fidson Healthcare Plc, has announced a N21 billion rights issue to strengthen its market dominance and expand operations across Africa.
The company held a formal signing ceremony at its Lagos headquarters on Friday to launch the capital raise, following regulatory approval from the Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX).
The strategic initiative involves offering 600 million new ordinary shares of 50 kobo each at N35 per share to existing shareholders, based on a ratio of one new share for every four shares held as of November 12, 2025.
Strategic Growth and Market Leadership
Speaking at the ceremony, Managing Director and CEO Biola Adebayo described the rights issue as a “critical milestone” for the company.
“The successful formalisation of this N21 billion rights issue marks a significant milestone for Fidson. This capital will cement our position as the foremost healthcare company in Nigeria and a dominant player across Africa,” Adebayo said.
He noted that the company’s exceptional performance during the year demonstrated its ability to thrive and innovate, adding that the capital infusion would accelerate growth and create sustainable long-term value for stakeholders.
Strong Financial Performance
The rights issue follows impressive financial results, with Fidson reporting a 132% year-on-year surge in profit after tax to N7.97 billion for the nine months ended September 30, 2025.
Revenue increased by 56% to N93.08 billion, while operating profit rose by 92% to N16.95 billion, reflecting robust demand, expanded market reach, and effective cost management.
Capital Deployment and Shareholder Benefits
Finance Director Imokha Ayebae explained that the rights issue was structured to benefit loyal investors, with proceeds earmarked for operational optimisation, technology upgrades, and expansion of product lines.
“This rights issue has been meticulously structured to be financially compelling and viable for our loyal investors. The proceeds will be deployed judiciously to optimise operations, including technology upgrades and product line expansion,” Ayebae stated. He encouraged eligible shareholders to exercise their provisional rights during the offer period.
Equity Growth and Investment Appeal
Michael Nzewi, CEO of CardinalStone Partners Limited, the lead issuing house, highlighted Fidson’s equity capital-raising journey, noting that the company’s last offering in 2019 was priced at N4.50 per share, compared to the current offer price of N35.
He described the price appreciation as a testament to the company’s growth trajectory and the attractiveness of Fidson shares for investors.
Expanding Production and Market Reach
The N21 billion capital infusion is specifically aimed at:
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Increasing manufacturing capacity
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Driving product innovation
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Expanding market penetration across Africa
Shareholders on the official register as of the qualification date are urged to submit participation forms and full payment through their stockbroker or any receiving agent listed in the rights circular before the closing date.
Commitment to Excellence in Healthcare
Fidson Healthcare reaffirmed its commitment to excellence in pharmaceutical manufacturing, delivering value to stakeholders, empowering its workforce, and driving innovation in the Nigerian and West African healthcare sectors.
