Fidson to Issue 900m Shares for Strategic Capital Expenditure

By Dipo Olowookere

Chairman of Fidson Healthcare Plc, Mr Segun Adebanji, has disclosed that the company will soon issue additional 900 million ordinary shares to shareholders, thereby increasing the total issued shares to 2.4 billion units.

Mr Adebanji made this disclosure at 19th Annual General Meeting (AGM) of Fidson Healthcare held on Tuesday, September 25, 2018, in Lagos.

This followed the approval of shareholders at the previous AGM for the company to raise an additional capital of N4.5 billion by way of a rights issue of three new shares for every five previously held.

The chairman said proceeds of the issue would be used to refinance some expensive debts, strengthen the working capital position of the business and fund some strategic capital expenditure.

According to him, the capital injection from the rights issue would enable the board and management to reposition the business in order to take advantage of visible growth opportunities.

Speaking on the 2017 financial year, Mr Adebanji said Fidson Healthcare broadened its products base, stimulated financial growth and increased its capacity to ensure the healthcare demands of Nigerians are adequately met.

He added that its new manufacturing facility, which started operations two years ago, has been well utilised, saying that the factory operated profitability during the year of 2017 with the implementation of efficiency and productivity improvement initiatives.

On his part, founder of Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu, urged shareholders to pick up their rights so that there would be expansion in the business, saying the company was a promising one.

One of the highlights of the AGM last week was the approval of the N300 million dividend payout of by shareholders for the financial year ended December 31, 2017, representing 20 kobo per ordinary share of 50 kobo, which is 15 kobo more than what was paid for the 2016 financial year.

During the meeting, the shareholders commended management of Fidson Healthcare for the impressive results.

A breakdown of the financial year under review showed 84 percent growth in the company’s gross revenue from N7.7 billion in 2016 to N14.1 billion.

Also, gross profit grew by 73 percent to N7.2 billion from N4.1 billion, operating profit jumped to N2.6 billion from N1.1 billion.

In addition, profit after tax appreciated to N1.1 billion from N316.8 million recorded in 2016.