Fidson Healthcare Plc has announced plans to raise N21 billion through a rights issue as part of its strategy to expand manufacturing operations and deepen market penetration. The initiative was formally unveiled at a signing ceremony held at the company’s head office in Lagos, with the process subject to final regulatory approvals.

The pharmaceutical manufacturer explained that the capital raise is intended to consolidate its leadership position in Nigeria’s pharmaceutical market while providing funding to support pan-African growth ambitions. The offer will involve the issuance of 600 million new ordinary shares of 50 kobo each at N35 per share.

Under the terms of the offer, the new shares will be made available to existing shareholders on the basis of one new ordinary share for every four ordinary shares held as of the qualification date, which was set as 12 November 2025.

The company noted that the proposed rights issue follows strong financial performance, which demonstrates its ability to absorb and deploy additional capital efficiently. For the nine months ended 30 September 2025, Fidson recorded a 132 per cent year-on-year increase in profit after tax to N7.97 billion, driven by a 56 per cent growth in revenue to N93.08 billion. Operating profit also rose by 92 per cent to N16.95 billion, reflecting improved cost management and efficiency gains.

According to Fidson, proceeds from the N21 billion rights issue will be directed towards increasing manufacturing capacity, driving product innovation, and expanding market reach into new territories, in line with its long-term growth strategy.

Speaking at the ceremony, the Managing Director and Chief Executive Officer of Fidson Healthcare Plc, Biola Adebayo, described the formalisation of the rights issue as a significant milestone.

“The additional capital will reinforce our leadership in Nigeria as well as strengthen our footprint across Africa,” he said. Adebayo added that the company’s strong performance during the current financial year demonstrates its ability to grow sustainably. “The rights issue will accelerate our growth trajectory while creating long-term value for shareholders and other stakeholders,” he said.

The Finance Director, Imokha Ayebae, explained that the rights issue was structured to be financially attractive to existing shareholders. He said, “The funds will be deployed prudently to optimise operations, including technology upgrades and the expansion of product lines.” He urged eligible shareholders to exercise their provisional rights during the offer period.

Michael Nzewi, Chief Executive Officer of CardinalStone Partners Limited, the lead issuing house, highlighted the company’s growth trajectory. “Fidson’s previous equity offering in 2019 was priced at N4.50 per share, compared with the current offer price of N35. The pricing reflects the company’s growth trajectory and the increasing appeal of its shares to investors,” he said.

Fidson advised shareholders whose names appear on the register as of the qualification date to complete the official participation form and submit it, with full payment, through their stockbrokers or any of the receiving agents listed in the rights circular before the closing date.

The company reiterated its commitment to strengthening pharmaceutical manufacturing through innovation, workforce development and sustained value creation for stakeholders.