Fidson Slashes Rights Issue’s Price to N4
By Dipo Olowookere
One of the leading healthcare companies in the country, Fidson Healthcare Plc, has obtained an approval from the Securities and Exchange Commission (SEC) to reduce the offer size and price of its rights issue.
The Lagos-based company had announced its plans to raise fresh capital from its shareholders through a rights issue.
According to the firm, the terms of the exercise were 900 million ordinary shares of 50 kobo each at N5 per unit on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on Thursday, July 5, 2018.
Business Post gathered that with the share price of Fidson at the Nigerian Stock Exchange (NSE) presently below N5, the company had to move to ensure shareholders get a more appropriate deal.
As a result of this, the offer price of the exercise was dropped by 20 percent to N4 per share, though after SEC’s approval.
In the revised rights issue, the company is offering 750 million ordinary shares of 50 kobo each at N4 per unit.
Confirming this in a circular yesterday, Head of Listings Regulation Department at NSE, Mr Godstime Iwenekhai, stated that, “The revised terms of the Rights Issue as stated in the SEC approved Rights Circular are now 750 million ordinary shares of 50 kobo each at N4 per share on the basis of one new ordinary share for every two ordinary shares held as at December 28, 2018.
Chairman of Fidson Healthcare Plc, Mr Segun Adebanji, had earlier disclosed that proceeds of the rights 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.