Fidson Healthcare Plc will allot all 600 million ordinary shares offered under its N21 billion Rights Issue after the offer closed oversubscribed by 117.3%, with excess applications expected to result in refunds of about N3.65 billion to investors.

Other News

The pharmaceutical company disclosed that investors applied for 704.19 million shares valued at N24.65 billion, compared to the 600 million shares valued at N21 billion available under the offer.

This was contained in the basis of allotment approved by the Securities and Exchange Commission (SEC) and obtained by Nairametrics.

The Rights Issue comprised 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 whose names appeared on the company’s register as of November 12, 2025.

What the data is saying: 

The allotment document shows that Fidson received 3,249 valid applications for 704.19 million shares valued at N24.65 billion.

  • Despite the strong demand, only 600 million shares valued at N21 billion were available for allotment, resulting in an oversubscription level of 117.3%.
  • According to the document, 3,225 shareholders fully accepted their rights amounting to 217.75 million shares valued at N7.62 billion, while another 11 shareholders partially accepted their rights representing 168,769 shares.
  • The company also recorded active trading in rights during the offer period, with 13 shareholders trading rights relating to 334.19 million shares valued at N11.7 billion on the floor of the Nigerian Exchange (NGX).
  • A total of 47.89 million shares were renounced by shareholders, creating a pool of shares available for additional allotment.
  • To take advantage of the opportunity, 2,201 investors applied for an additional 152.08 million shares worth N5.32 billion beyond their original entitlements.
  • However, with only 47.89 million renounced shares available for redistribution, the company allotted additional shares on a pro-rata basis of 31.5%.

As a result, applications for approximately 104.19 million additional shares valued at N3.65 billion were not allotted and are expected to be refunded to affected investors.

More insights: 

Analysis of the allotment schedule indicates that the offer was dominated by large shareholders and institutional investors.

  • The two shareholders in the 100 million shares-and-above category received a combined 331.74 million shares, representing about 55% of the entire offer.
  • Similarly, eight investors in the 10 million to 50 million shares bracket were allotted 153.78 million shares, accounting for approximately 26% of total shares allotted.
  • Together, these two categories controlled more than 80% of the total allotment, indicating that the capital raise was largely driven by major shareholders.
  • Retail participation was widespread but relatively small in size. The largest category by number consisted of 1,394 shareholders holding between one and 1,000 shares, yet they collectively received just 492,055 shares, representing less than 1% of the total allotment.

With Fidson shares recently trading around N136.50, the offer price of N35 per share represented a significant discount to the prevailing market price, helping to drive demand for both rights subscriptions and additional shares.

What you should know: 

In December 2025, Fidson Healthcare launched the N21 billion Rights Issue as part of a broader strategy to strengthen its capital structure, reduce debt and support expansion plans.

With SEC approval now secured, successful applicants are expected to receive their allotted shares through the Central Securities Clearing System (CSCS), while excess subscription monies estimated at N3.65 billion arising from unallotted additional share applications will be refunded in accordance with the approved basis of allotment.