By Modupe Gbadeyanka
The board of May & Baker Nigeria Plc has received the regulatory approval it sought for the issuance of the N2.45 billion rights issue.
The Nigeria’s first pharmaceutical company had written to the stock market regulator to raise the fresh capital for its expansion plans.
May & Baker Nigeria wants to raise a total of N2.45 billion through rights issue of 980 million ordinary shares of 50 kobo each at an offer price of N2.50k per share on the basis of one new ordinary share for every one ordinary shares held as at the close of business on Tuesday, September 4, 2018.
In a document from the Nigerian Stock Exchange (NSE) sighted by Business Post correspondent at the weekend, the regulator said it has given the firm the go-ahead to raise the funds.
Business Post gathered that the stockbroking firms for the exercise are Capital Assets Limited and Compass Investments & Securities Limited.
It was further learnt that the financial advisers for the rights issue are Cordros Capital Limited and Afrinvest (West Africa) Limited.
According to the NSE, the application for the exercise was approved on Monday, September 10, 2018.
Recently, Chairman of May & Baker Mr Theophilus Danjuma, disclosed that “our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond.”
According to him, proceeds from the exercise would be used to expand the company to the Sub-Saharan Africa (SSA) markets.
“Your company has turned the corner and is now solidly on the path of growth and strong profitability.
“Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in Sub-Saharan Africa.
“The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilization at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Mr Danjuma had informed shareholders of May & Baker.
As at the close of business on Friday, May and Baker Nigeria traded on the local stock market at N2.29k per share.
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