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Fidson Healthcare Plc, one of Nigeria’s top pharmaceutical companies founded by Fidelis Ayebae, plans to raise up to N21 billion ($14.4 million) from existing shareholders to expand production and increase sales across Africa, after reporting a sharp increase in earnings.
The company said it has begun the process for a rights issue, pending approvals from the Securities and Exchange Commission and Nigerian Exchange. The company will offer 600 million new ordinary shares at N35 ($0.02) each, on a one-for-four basis for shareholders. Proceeds will fund manufacturing expansion, new products and entry into new African markets.
Earnings surge backs capital raise
The offer follows a strong financial showing. Fidson reported a 132 percent jump in profit after tax to N7.97 billion ($5.48 million) for the nine months ended Sept. 30, 2025. Revenue rose 56 percent to N93.08 billion ($63.97 million), while operating profit climbed 92 percent to N16.95 billion ($11.65 million), helped by higher sales volumes and tighter cost control.
Biola Adebayo, managing director and chief executive officer, said the rights issue reflects confidence in the company’s operating performance. “This funding strengthens our ability to meet growing demand and extend our reach across Africa,” Adebayo said. “It also supports long-term value for shareholders as we continue to invest in capacity and innovation.”
Offer structure and investor appeal
Finance Director Imokha Ayebae said the offer was designed to be attractive to existing investors, with funds earmarked for plant upgrades, technology and broader product lines. Eligible shareholders are encouraged to take up their rights during the offer period, he said.
Michael Nzewi, CEO of CardinalStone Partners, the lead issuing house, noted that Fidson’s last equity raise in 2019 was priced at N4.5 ($0.003) per share. The current offer price of N35 ($0.02), he said, reflects years of growth while still providing a discount to the market price.
Founder’s legacy and regional push
Fidson operates manufacturing facilities in Nigeria and supplies medicines across West Africa, benefiting from policies that favor locally made drugs. The company recently expanded a partnership with Japan’s Ohara to boost local production and reduce imports.
Fidelis Ayebae, who stepped down as CEO in August, remains the top individual shareholder with a 33.1 percent stake. Over nearly three decades, he built Fidson from a small distributor into a top pharma giant, including pioneering local production of antiretroviral drugs in Nigeria.
