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Rights Issue: May & Baker seriously woos subscribers, promises 2018 dividend

May & Baker has promised that investors who subscribe to the company’s new rights issue will stand to receive dividends of 2018 financial year. 



May & Baker Nigeria Plc

The Chief Executive Officer of May & Baker Plc, Mr Nnamdi Okafor, in an obvious attempt to entice its shareholders, recently promised that investors who subscribe to the company’s new rights issue will stand a chance of receiving dividends by the end of the 2018 financial year.

He further wooed shareholders by assuring them that the company has been consistent with dividend payment, which Nairametrics’ checks can confirm.

He also bragged about May & Baker’s capitalisation, which according to him makes the company “an investment haven”.

“The shareholders who will subscribe to the new shares being offered will have the benefit of reaping dividend to be declared this 2018 financial year. Note that May & Baker has consistently paid dividends over the years.” – Okafor

The company is trying to raise capital for expansion purposes

As we reported, May & Baker Plc, last month, sought regulatory approval for the issuance of some 980 million ordinary shares which would be sold at N2.50 per share. This move is part of the company’s efforts to raise about N3 billion new equity fund, which would facilitate expansion efforts at the company.

Speaking recently about this expansion effort, the company’s CEO said the rights issue will help to fast-track some key projects. In his words

“Our plan is to invest the proceeds of the Rights Issue to some key projects. For instance, over N400 million of the expected N2.45 billion will be used to finance part of our equity in Biovaccines Nigeria Limited, the joint venture company for local vaccine production. We are also going to invest over N500 million in capacity expansion for one of our cash cow products, paracetamol for which we are building a dedicated plant.”

Financially, the company is picking up from last year’s slump

According to the company’s half-year 2018 unaudited financial report, revenue climbed to N4.6 billion as against the N4.4 billion that was recorded during the same period in 2017. Profit after tax for the 2018 half-year period also increased to N264 million compared to what obtained prior.

Mr Okafor feels the company could perform better financially if the economy were to be favourable.

In the meantime, the company’s stock is trading at N2.24 on the Nigerian Stock Exchange.

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May & Baker Plc is one of the leading drug manufacturing companies in Nigeria which was founded in 1944.

Its rights issue is currently ongoing and would close on Wednesday, November 28, 2018.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Business News

CAC sets 3-hour time line for company registration in 2021

The CAC is prioritising the reduction of the registration circle for new companies to just 3 hours before the end of the year 2021.



CAC, Corporate Affairs Commission selects NIPOST as official courier partner

The Corporate Affairs Commission (CAC) has said that following the successful deployment of an end-to-end registration module, it was now prioritising the reduction of the registration circle for new companies to just 3 hours before the end of the year 2021.

This is coming after CAC had in November 2020, announced the implementation of new technology that will change the face of business registration including allowing customers to print their certificates with verifiable QR code from anywhere in the world.

This disclosure was made by the Registrar-General of the commission, Garba Abubakar, at a dinner in honour of the Chairman, Governing Board, CAC and Nigerian Ambassador-Designate to the Kingdom of Spain, Ademola Seriki.

In order to achieve this target, the Registrar-General said the commission was making arrangements to empower over 400 approving officers with working tools to process and approve registration applications either from home or anywhere necessary,” the agency stated.

Abubakar noted that the challenges of the Covid-19 pandemic had adversely hampered CAC’s delivery timeline.

He, however, pointed out that CAC was resolutely committed to serving its customers despite being forced to operate with less than 50% of its workforce.

While bidding farewell to Seriki, the Registrar-General said he received the news of his appointment with mixed feelings as CAC was going to miss his tremendous support and guidance.

Also speaking at the event, the Minister of Industry, Trade and Investment, Niyi Adebayo, described the outgoing CAC Chairman as a man of immense pedigree and endowed with enormous potential to justify the confidence reposed in him by the president.

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In case you missed it

  • The CAC recently announced the upgrade of its website and online registration portal to include features, which allow for the automation of some selected services and processes, in line with the Federal Government’s mandate of improving the ease of doing business in Nigeria.
  • The selected services and processes include Electronic search of company records, Upgraded Companies Registration Portal for Pre-incorporation filings and Post incorporation filings.


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Corporate deals

DEAL: Nigerian fintech software provider, Appzone raises $10m to scale its products and services

Appzone platforms are used by 18 commercial banks and over 450 microfinance banks in Africa.



Appzone a fintech software provider that builds proprietary solutions for financial institutions and their banking and payments services announced that it has closed $10 million in Series A investment.

The Series A round was led by CardinalStone Capital Advisers, a Lagos-based investment firm. Other investors include V8 Capital, Constant Capital, and Itanna Capital Ventures. New York-based but Africa-focused firm Lateral Investment Partners also participated.

Founded in 2008 by Emeka Emetarom, Obi Emetarom, and Wale Onawunmi, Appzone functions as an enabler (at payment rails and the core infrastructure) within banking and payments.

READ: Shola Akinlade: The inspiration behind Paystack’s success

Appzone platforms are used by 18 commercial banks and over 450 microfinance banks in Africa. Together, they amass a yearly transaction value and yearly loan disbursement of $2 billion and $300million.

Before now, Appzone closed a $2 million deal from South African Business Connexion (BCX) in 2014. Four years later, it raised $2.5 million in convertible debt and bought back shares from BCX in the process. But overall, the company says it has raised $15 million in equity funding.

This new funding will be used to scale its products and services and expand across more African countries. The startup also plans to achieve scale by growing its engineering team.

READ: From Chemist to Bank CEO – The Story of Uzoma Dozie

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What they are saying

Yomi Jemibewon, the Co-Founder and Managing Director of Cardinal Stone Capital Advisers, said the firm’s investment in Appzone is further proof of Africa’s potential as the future hub of world-class technology.

READ: Bill Gates holds far more cash than Nigeria’s foreign reserve

Appzone is building a disruptive fintech ecosystem that will be the backbone of Africa’s finance industry with products across payments, infrastructure, and software as a service. The impact of Appzone’s work is multifold — the company’s products deepen financial inclusion across the continent whilst providing best-fit and low-cost solutions to financial institutions. Its emphasis on premium talent also helps stem brain drain, rewarding Africa’s best brains with best-in-class employment opportunities.”

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