Fidson gets SEC nod to offer N3bn right issue

Motolani Oseni

Fidson Healthcare Plc has said that it has got the regulatory approval from the Securities and Exchange Commission (SEC) to revise the offer of its planned rights issue. In a statement on the Nigerian Stock Exchange (NSE), the healthcare company now plans to raise N3 billion new equity funds through a rights issue of 750 million ordinary shares of 50 kobo each at N4 per share considering the prevailing market situation. Fidson had earlier announced a rights issue of 900,000,000 ordinary shares of N0.50 each at N5.00 per share, on the basis of 3 new ordinary shares for every 5 ordinary shares held as at the close of business on Thursday, 5 July 2018. The rights issue had been pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5, 2018. The rights issue will now be pre-allotted on the basis of one new ordinary share for every two ordinary shares held as at December 28, 2018, which will see the size and price of the offer reduced. Shareholders of Fidson had indicated their willingness to support the company’s plan to raise new equity funds. Shareholders commended the performance of the company noting that recapitalisation would create better opportunities for the company. Fidson Healthcare is currently trading at N4.70 on the floor of the NSE. The company has crafted the pharmaceutical architecture of the industry over the years of its existence, playing very defining roles in the emergence of the new generation of industry players.