Fidson Launches ₦21bn Rights Issue

Fidson Healthcare Plc has announced a ₦21 billion Rights Issue as part of efforts to strengthen its balance sheet, reduce debt, and expand production capacity.

The pharmaceutical manufacturer is offering 600 million ordinary shares at ₦35 per share, on the basis of one new share for every four shares held by existing shareholders.

The offer period opened in December and is scheduled to close at the end of January 2026.

The issue price represents a discount to the company’s market price as at the qualification date, providing existing shareholders with an opportunity to increase their holdings at a lower valuation.

Proceeds from the Rights Issue will be deployed primarily towards debt repayment, capital expenditure, and working capital requirements. A portion of the funds will also cover transaction and issuance costs.

According to the company’s allocation plan, a significant share of the funds will be used to reduce interest-bearing loans, improving Fidson’s leverage position and lowering finance costs. Additional funding will support capacity expansion and operational needs across its manufacturing and distribution network.

Fidson Healthcare has been listed on the Nigerian Exchange since 2008 and operates one of the largest pharmaceutical manufacturing platforms in the country, with a diverse portfolio spanning infectious diseases, cardiovascular care, psychiatry, and other therapeutic areas.

The company also maintains strategic partnerships with international pharmaceutical firms aimed at boosting local drug production and reducing reliance on imports, particularly for essential treatments.

Market analysts note that while the increase in issued shares may result in short-term earnings dilution, the expected reduction in debt and interest expenses could improve profitability and financial flexibility over the medium to long term.

Investors are expected to closely monitor cost control measures, as margins in the pharmaceutical sector remain tight despite strong revenue growth.

Overall, the Rights Issue positions Fidson to improve its capital structure while supporting long-term expansion in Nigeria’s growing healthcare market.