May & Baker Applies to Raise N2.5 Billion via Rights Issue

May and Baker Nigeria Plc has applied to the Nigerian Stock Exchange (NSE) to raise N2.450 billion fresh capital from existing shareholders. The company is going to raise the funds through a Rights Issue of 980 million shares of 50 kobo each at N2.50 per share on the basis of one new share for every one share held as at the close business on Tuesday, 4 September 2018.

Expectedly, the funds would be used to enhance the operations and performance of May & Baker going forward. The pharmaceutical firm recently reported a growth of 179 per cent in the first half (H1) of the year ended June 30, 2018. According to the unaudited results of the company, total comprehensive income-which includes PAT and extra ordinary income rose to N601.37 million in 2018 as against N94.86 million recorded in the comparable period of 2017. The 534 per cent increase in net distributable earnings raised strong prospect of possible significant increase in dividend payout to shareholders. The report showed that group’s profit before tax rose by 178.76 per cent to N388.90 million in first half 2018 as against N139.51 million recorded in comparable period of 2017. Profit after tax jumped by 178.78 per cent from N94.86 million to N264.45 million.

Explaining the performance, Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said It is noteworthy that the company achieved higher turnover in 2018 despite the discontinuation of a significant arm of its business responsible for about 20 per cent of turnover in 2017. According to him, this performance, has, again demonstrated the long-term sustainability of the company’s growth strategy and the continuing efficiency of its world-class pharmaceutical manufacturing complex in Ota, Ogun State.

“Our many growth initiatives are paying off and we are happy that the results have proved us right. With improvement in macroeconomic environment, we will continue to improve on our performance with a view to creating greater value for our shareholders,” Okafor said.

He noted that the impending commencement of operations of Biovaccines Nigeria Limited and ongoing efforts to turn the company’s world-class manufacturing facility in Ota, Ogun State, into a hub of pharmaceutical manufacturing in West Africa hold great prospects for the group.