Fidson Healthcare Raises N2.3bn Capital to Boost Operations

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Goddy Egene

Fidson Healthcare Plc has successfully raised N2.345 billion equity capital from existing shareholders to boost its operations. However, the amount was about 78.18 per cent of the N3 billion the company targeted to raise. Fidson Healthcare Plc made a Rights Issue of 750 million shares of 50 kobo at N4.00 on the basis of one new share for every per share to raise N3 billion.

But at the end of the issue in April, a total of 586.360 million shares were accepted by shareholders at N4 per share, amounting to N2.345 billion, which is about 78.18 per cent.

The additional shares were listed by the Nigerian Stock Exchange (NSE) last week and has increase the total issued and fully paid up shares of Fidson Healthcare Plc from 1.5 billion to 2.086 billion shares.

Shareholders of Fidson Healthcare had in 2017 approved a plan by the company to raise N6 billion in new capital to boost its working capital and support its expansion plan.

The shareholders had also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of additional 600 million shares of 50 kobo each.

According to the company, the new capital would be used to boost working capital that had been negatively impacted by the depreciation of Naira.

The company had also explained that its new factory that came on stream at the tail end of 2016 needed additional capital to realise the full potential and utilise the new factory to full capacity.

Meanwhile, trading resumed at the stock market yesterday on positive note to halt the losing streak recorded last week. Specifically, the NSE All-Share Index appreciated by 0.06 per cent to close at 29, 292.66 as 17 stocks gained, while 14 lost.

Flour Mills of Nigeria Plc led the price gainers with 10 per cent, trailed by Unity Bank Plc with 9.6 per cent. Redstar Express Plc garnered 9.0 per cent, while Wema Bank Plc and WAPIC Insurance Plc appreciated by 8.2 per cent and 7.5 per cent respectively.

Conversely, Forte Oil Plc led the price losers with 10 per cent, trailed by Glaxosmithkline Consumer Nigeria Plc with 8.0 per cent. Sovereign Trust Insurance Plc shed 4.7 per cent, while FCMB Group Plc went down by 1.9 per cent.

Activity level was mixed as volume traded declined 27.5 per cent to 216.3 million shares while value traded advanced 24.1 per cent to N2.3 billion. WAPIC Insurance Plc (84.9 million shares), FBN Holdings Plc (16.2 million shares)and Zenith Bank Plc (14.7 million shares) were the most traded stocks by volume while MTN Nigeria Plc (N1.1 billion), Zenith Bank Plc (N282.3 million ) and Guaranty Trust Bank Plc (N275.9 million) led by value.