KEY POINTS
- Fidson’s expansion funding targets N21 billion from shareholders.
- Earnings growth supports manufacturing and regional plans.
- Founder Fidelis Ayebae remains the top shareholder.
Fidson Healthcare Plc, founded by Fidelis Ayebae, plans to raise N21 billion, equivalent to $14.4 million, to fund expanded production and deeper market entry across Africa.
A sharp rise in earnings strengthens management’s confidence in the company’s growth strategy. Preparations for a rights issue have started, pending approvals from Nigeria’s Securities and Exchange Commission and the Nigerian Exchange.
The company will offer 600 million new ordinary shares at N35 each on a one-for-four basis to shareholders. The proceeds will be used to expand manufacturing capacity, introduce new products and support entry into additional African countries.
Strong earnings underpin capital raise
The planned offer follows a strong financial performance in 2025. Fidson reported a 132 percent increase in profit after tax to N7.97 billion for the nine months ended Sept. 30. Revenue rose 56 percent to N93.08 billion, while operating profit climbed 92 percent to N16.95 billion. The company attributed the gains to higher sales volumes, improved product mix and tighter control of operating costs.
Biola Adebayo, managing director and chief executive officer, said the rights issue reflects the company’s confidence in its operating momentum. She said the funds will help Fidson meet rising demand for locally manufactured medicines while extending its footprint across Africa. Adebayo added that the investment supports long-term shareholder value through continued spending on capacity and product development.
The expansion plan builds on Fidson’s position as a major supplier of medicines in Nigeria and West Africa, where governments have encouraged local drug production to reduce dependence on imports. The company operates manufacturing facilities in Nigeria and has steadily increased output in recent years.
Founder-built firm eyes regional scale
Finance Director Imokha Ayebae said the offer was structured to appeal to existing investors, with capital earmarked for plant upgrades, technology investments and broader product lines. He urged eligible shareholders to consider exercising their rights during the offer window.
Michael Nzewi, chief executive officer of CardinalStone Partners, the lead issuing house, said Fidson’s previous equity raise in 2019 was priced at N4.5 per share. He said the new offer price of N35 reflects the company’s growth over the period, while still offering a discount to the prevailing market price.
Fidson has also strengthened its technical capabilities through partnerships. The company recently expanded collaboration with Japan’s Ohara Pharmaceutical to increase local manufacturing and reduce import reliance.
Founder Fidelis Ayebae, who stepped down as chief executive in August, remains the largest individual shareholder with a 33.1 percent stake. Over nearly three decades, he built Fidson from a small distribution business into one of Nigeria’s leading pharmaceutical manufacturers, including pioneering local production of antiretroviral drugs.
