May & Baker Nigeria Plc has earned N1.86 billion from Rights Issue after the Nigeria Stock Exchange (NSE) listed additional 745,234,886 ordinary shares of the drug manufacturing company.
Last year October, Nairametrics had reported that May & Baker intends to lure subscribers with a promise of receiving dividends by the end of the 2018 financial year. The company had sought for regulatory approval for the issuance of some 980 million ordinary shares which would be sold at N2.50 per share.
The application had opened on Monday, October 22, 2018, to close on Wednesday, November 28, 2018. In a ThisDay report, the company realised about N1.86 billion from the right issue as it was 76.04 per cent successful.
Purpose of trading shares
The company plans to expand its services, and this recent financial investment is part of the company’s efforts to raise about N3 billion new equity fund. The funds from the rights issue would be invested in some key projects. The Chief Executive Officer of May & Baker Plc, Nnamdi Okafor, in a Nairametrics report, said 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. The company also intends to invest over N500 million in capacity expansion for one of their cash cow products, paracetamol for which May & Baker is building a dedicated plant.
May & Baker Nigeria Plc Profile
May & Baker, Nigeria Plc was founded on September 4, 1944 as Nigeria’s first pharmaceutical company. It has its origin in England, from May & Pickett, a firm for manufacturing chemicals for pharmaceutical products. In 1839 Grimwade, May & Pickett transformed into May & Baker United Kingdom Limited following some changes in the ownership. Consequently, the name of the company has changed at different times and today, only the Nigerian offshoot is known by the original name. May & Baker Nigeria Limited became a publicly quoted company following its listing by introduction on the Nigerian Stock Exchange on November 10, 1994 and became May & Baker Nigeria Plc.