Fidson declares ₦1 interim dividend, approves N30 bn capital raise

Fidson Healthcare Plc has declared an interim dividend of ₦1.00 per 50 kobo share, totalling ₦2.29 billion, as it pursues a ₦30 billion capital raise.

The dividend was approved at the company’s 26th Annual General Meeting held on July 31.

The pay-out follows a stellar second-quarter performance in which profit after tax surged nearly sevenfold to ₦2.8 billion, driven by sales of prescription medicines, which accounted for over 60% of total revenue. Revenue for the quarter (April–June 2025) rose by 50.4% to ₦27.63 billion, up from ₦18.37 billion a year earlier.

For the first half of 2025, revenue jumped to ₦62.64 billion from ₦37.25 billion in H1 2024, while profit after tax climbed to ₦6.01 billion, from ₦1.51 billion—a 297% increase.

Despite its rally – 183% year-to-date, peaking at ₦47 in mid-July – the stock has seen brief cooling amid investor concerns about dilution from the proposed capital raise.

Shareholders at the AGM approved the plan to issue 600 million new ordinary shares, allowing the board to determine the mode: public offering, rights issue, or private placement.

The company’s growth strategy is underpinned by global partnerships. In 2023, it collaborated with India’s Serum Institute to produce Nigeria’s first malaria vaccine. It also entered a joint venture with the China-Africa Development Fund and other partners to build a pharmaceutical facility in the Lekki Free Trade Zone, aimed at supplying treatment to Nigeria’s 1.9 million HIV patients, with potential for regional expansion.

Analysts expect the dividend to help steady investor confidence as the capital raise approaches.

Also approved at the AGM were director re-elections, auditor remuneration, ₦754 million in managerial compensation, and related-party transaction mandates. Shareholders endorsed changes to the company’s Memorandum of Association to reflect an increased ₦1.5 billion minimum share capital.

Fidson closed at ₦39.60 on Friday, off its July high but well above January levels.

The company is yet to release qualification and payment dates for the dividend.