Fidson Moves to Raise N21bn Through Rights Issue

Fidson Healthcare Plc has moved to strengthen its balance sheet and expand its regional footprint as it formally commenced processes for a N21 billion Rights Issue aimed at scaling production capacity and deepening its dominance in the pharmaceutical market.

The company held a signing ceremony on Friday, December 12, 2025, at its head office in Lagos, marking the final stage before the launch of the offer, subject to regulatory approvals from the Securities and Exchange Commission and the Nigerian Exchange Limited.

Under the proposed Rights Issue, Fidson plans to issue 600 million new ordinary shares of 50 kobo each at N35 per share, offered to existing shareholders on the basis of one new share for every four shares held as of November 12, 2025. The offer is expected to raise gross proceeds of up to N21 billion.

Company officials said the capital raise is intended to support expansion of manufacturing capacity, enhance product development and finance entry into new African markets, as Fidson positions itself for sustained long-term growth amid rising demand for pharmaceutical products across the continent.

The move follows a strong financial performance by the company in the nine months ended September 30, 2025, during which profit after tax rose by 132 per cent year-on-year to N7.97 billion. Revenue for the period increased by 56 per cent to N93.08 billion, while operating profit climbed by 92 per cent to N16.95 billion, reflecting improved scale, pricing strength and tighter cost controls.

Managing Director and Chief Executive Officer, Biola Adebayo, said the Rights Issue represents a strategic milestone for the company, noting that the fresh capital would enable Fidson to accelerate its growth plans and reinforce its leadership position within Nigeria’s healthcare sector and beyond.

She added that the company’s recent financial performance demonstrated its capacity to deploy capital efficiently while delivering value to shareholders and meeting growing healthcare needs.

Finance Director, Imokha Ayebae, said the offer had been carefully structured to appeal to existing investors, stressing that proceeds would be deployed prudently across operational upgrades, technology investments and expansion of product lines.

Also speaking, the Chief Executive Officer of CardinalStone Partners Limited, Michael Nzewi, described Fidson’s equity journey as a reflection of sustained growth, noting that the current offer price of N35 per share, compared with N4.50 in the company’s last equity raise in 2019, underscores the appreciation in shareholder value over time.

He added that the pricing of the Rights Issue at a discount to the prevailing market price presents an attractive opportunity for existing shareholders to increase their holdings.

Shareholders listed on the company’s register as of the qualification date have been advised to submit completed participation forms along with full payment through their stockbrokers or designated receiving agents within the offer period.

Fidson said the capital raise aligns with its long-term strategy to strengthen local pharmaceutical manufacturing, expand access to quality medicines and position the company as a leading healthcare player across Africa.