Fidson Healthcare Plc will allot all 600 million shares offered under its N21 billion Rights Issue after the offer closed oversubscribed by 117.3 per cent, reflecting strong investor demand for the pharmaceutical company’s shares.
The company disclosed that investors applied for 704.19 million ordinary shares valued at N24.65 billion, significantly higher than the 600 million shares worth N21 billion available under the offer.
The development was contained in the basis of allotment approved by the Securities and Exchange Commission (SEC).
Due to the oversubscription, Fidson said applications for additional shares would be scaled down, with about N3.65 billion expected to be refunded to investors whose excess requests could not be fully accommodated.
The Rights Issue involved 600 million ordinary shares of 50 kobo each offered at N35 per share on the basis of one new share for every four shares held by shareholders listed on the company’s register as of November 12, 2025.
According to the allotment document, the company received 3,249 valid applications for 704.19 million shares valued at N24.65 billion.
Out of the applications received:
- 3,225 shareholders fully accepted their rights amounting to 217.75 million shares valued at N7.62 billion.
- Another 11 shareholders partially accepted their entitlements.
- Rights relating to 334.19 million shares valued at N11.7 billion were traded on the floor of the Nigerian Exchange Limited during the offer period.
A total of 47.89 million shares were renounced by shareholders, creating additional shares available for redistribution.
To take advantage of the discounted offer, 2,201 investors applied for an additional 152.08 million shares worth N5.32 billion beyond their original entitlements.
However, since only 47.89 million shares were available for redistribution, Fidson allotted the additional shares on a pro-rata basis of 31.5 per cent.
Analysis of the allotment schedule showed that large shareholders and institutional investors accounted for most of the subscriptions.
Two shareholders in the 100 million shares-and-above category received a combined 331.74 million shares, representing about 55 per cent of the entire offer.
Similarly, eight investors in the 10 million to 50 million shares bracket were allotted 153.78 million shares, accounting for roughly 26 per cent of total shares allotted.
Retail participation remained broad but relatively small in value. The largest shareholder category by number consisted of 1,394 investors holding between one and 1,000 shares, though they collectively received less than 1 per cent of the total allotment.
With Fidson shares recently trading around N136.50 on the NGX, the Rights Issue price of N35 per share represented a steep discount to market value, helping to drive strong investor appetite.
Fidson launched the N21 billion Rights Issue in December 2025 as part of plans to strengthen its balance sheet, reduce debt exposure, and support expansion projects.
According to the company, proceeds from the capital raise will be used for:
- Debt repayment – N9.5 billion
- Manufacturing expansion and capacity upgrades – N7.5 billion
- Working capital support – N3.51 billion
The company said the funding would support its broader strategy to expand pharmaceutical manufacturing capacity and strengthen its footprint across African markets.
Successful applicants are expected to receive their allotted shares through the Central Securities Clearing System (CSCS), while refunds for unallotted additional share applications will be processed in line with the SEC-approved allotment structure.
