The three major Indian investors in Mecure Industries Plc have netted about N11 billion in net capital gains since the listing of the healthcare management group at the Nigerian stock market.
Mecure Industries Plc was listed at the Nigerian Exchange (NGX) by way of introduction on Wednesday November 8, 2023, with the admission of 4.0 billion ordinary shares of 50 kobo each to the Growth Board of the NGX at N2.96 per share. This implied listing market capitalisation of N11.84 billion.
Market value analysis at the weekend showed that the stock has appreciated by 93.6 per cent over the past two weeks, with current market value standing at N22.92 billion, representing net capital gain of N11.08 billion.
Mecure Industries’ share price had risen by 32.43 per cent in the first week of listing, rising from N2.96 per share to close at N3.92 per share. This implied increase in market capitalisation from listing value of N11.84 billion to N15.68 billion.
The company also made the top gainers’ list at the weekend with a gain of 46.17 per cent to close at N5.73 per share, thus increasing its market value to N22.92 billion.
The Udanis own 96.87 per cent majority equity stake in Mecure Industries with Mr. Samir Udani, Avni Udani and Mr Arjun Udani holding 32.29 per cent equity stake each, according to the latest regulatory filing by the company. Anderline Dukor, a Nigerian pharmacist holds 0.68 per cent equity stake while other sundry shareholders hold the remaining 2.45 per cent equity stake.
By virtue of its listing method, the shares being traded primarily belonged to existing shareholders who are required to make available shares for trading purpose.
Listing by introduction is a method of listing where the company making initial listing of its shares has no subsisting offering of its shares or securities to investors and no additional capital is being raised from the market at the time of listing.
Under the rules at the NGX, companies seeking to list by way of introduction or any other method at the Exchange must make available shares or securities for trading on the day of listing as well as provide the investing public with updated financial statements and other material information.
On the day of listing of equity securities excluding public offerings, a company is expected to make available for trading a sufficient amount of shares, within the range of at least one per cent of its outstanding shares, or such volume or value of shares as may be determined by the Exchange, to activate secondary trading on the shares.
“When non-Nigerians come into our country, invest in our country, build businesses in Nigeria, and can list them on the exchange. I think it’s a model that I would like to encourage others to adopt,” Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola said on the listing of Mecure Industries.
Chairman, Mecure Industries Plc, Mr. Samir Udani, said the listing was a major development for the company.
He said as the company transformed from a private company to a public one with hopes of achieving more visibility and expansion.
“It’s a very significant move on the part of the company and the board members because a family-run management now is in the eyes of the public. Very important because this is going to get us visibility and also bring the responsibility to all of us. So yes, we have some good expansion plans which we will try to actualize by listing on the stock exchange,” Udani said.
Udani explained that 30 per cent of the company’s products are only manufactured in the country while 70 per cent are imported.
“So there’s a lot of scope for local producers to expand and grow, especially when we have challenges like foreign exchange (forex). We can create jobs here and make sure that we conserve as much of forex as possible by producing locally,” Udani said.
Popoola said the addition of the healthcare manufacturing company to the Growth Board would impact on the exchange and the country.
“When you look at our exchange today, one of the things that is notably absent is the number of healthcare companies that you can invest into in our exchange. So to have a company that, I would say, sits at that intersection of manufacturing on one hand, and manufacturing towards the healthcare sector, we welcome that very much, because then of course it broadens the scope of the investable assets for us at the exchange. It also demonstrates what I would call the core value that the capital markets bring.
“We can’t overemphasise the importance of healthcare to our country, Nigeria. So to find a company manufacturing, you know, healthcare related products that has now the opportunity of the capital markets to raise capital, to amplify its visibility as an example, to help it build more sustainable businesses, is one that certainly does gladden our hearts,” Popoola said.
According to him, listing by introduction offers a good model for companies to make entry to the stock market.
“So we’re starting this today, it’s a listing by introduction, and we’ve seen that as a model that has worked quite well over the past few years in our capital markets. We’ve seen very big companies list by introduction, and then they do not too long after that a follow on offer. And we’ve seen some smaller companies also do the same,” Popoola said.
