The Nigerian Stock Exchange (NSE) has approved the plan by May & Baker Nigeria Plc to raise about N2.45 billion equity fund by offering new ordinary shares to shareholders.
The quotation committee of the National Council of the Exchange approved the application filed on behalf of the healthcare company by its professional advisers. Capital Assets Limited and Compass Investments & Securities Limited are the stockbrokers to the rights issue. Cordros Capital Limited and Afrinvest (West Africa) Limited are the issuing houses.
The approval, a major stage in the share issuance process, will enable May & Baker Nigeria to list the additional shares to be issued under the rights issue on the NSE.
May & Baker Nigeria will be offering 980 million ordinary shares of 50 kobo each at N2.50 per share to existing shareholders. The rights issue has been provisionally pre-allotted on the basis of one new ordinary share for every one ordinary shares held as at the close of business on Tuesday, September 4, 2018. Shareholders had in 2014 empowered the company to raise up to N3.2 billion new equity capital.
Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), recently told shareholders that directors of the company believed that the time is now right to raise the funds to enable the company harness new opportunities.
“Therefore our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.
He outlined that the company has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.
According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.
“Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in Sub-Saharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilisation at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.