Dipo Olowookere
By Dipo Olowookere
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, is seeking about N5 billion from the sale of commercial paper (CP) to investors in the capital market.
The notable pharmaceutical brand said funds from the exercise would be used to finance its daily business operations.
Subscription for the debt instrument commenced on Monday, October 30, 2023, and will conclude on Monday, November 6, 2023, a notice obtained by this newspaper disclosed.
The organisation is selling the CP in Series 5 and 6, with the former having a tenor of 181 days at a discounted rate of 13.53 per cent and an implied yield of 14.50 per cent. As for the latter series, it has a maturity of 269 days, with a discounted rate of 14.32 per cent and an implied yield of 16.00 per cent.
Investors interested in purchasing the Naira-denominated paper, which is issued by the company under its N10 billion commercial paper programme, will have to pay at least N5 million, the minimum subscription value.
The instability in the macroeconomic environment in Nigeria has also affected Fidson, especially the foreign exchange (FX) supply squeeze, which has weakened the value of the Naira in the currency market.
However, Fidson has always found a way to navigate the murky waters because of its investment in innovation and the introduction of new drugs/products for end users.
According to analysts at Meristem Research, Fidson and Neimeth, another notable player in the sector, should sustain their revenue growth “on the back of rising prices and the essential nature of the industry,” though the cost pressure is expected to remain elevated due to “the challenges with FX availability and rising inflation” as well as “dwindling consumer wallets.”
Business Post reports that in the past three trading sessions, the share price of Fidson has remained static at N15.00 per unit at the Nigerian Exchange (NGX) Limited.
