NGX List N11.8 Billion Mecure Industries Share

It what appears to be a further testament to a renewed investors interest in the stock market, the Nigerian Exchange on Wednesday listed N11,840,000,000 billion shares of Mecure Industries.

The listing of 4,000,000,000 Ordinary Shares of 50 kobo each at N2.96 per Share was commemorated with a Closing Gong Ceremony to the delight of stakeholders in the capital market community.

The company has a net asset (or shareholders’ funds) of N9.3 billion as of its most recent financial statements. It also has retained earnings of N7.3 billion.

Earlier, according to the company, the listing will amongst others, “create liquidity for its shares in the secondary market and have access to a platform for raising long-term capital in the future from a wide range of domestic and international investors.”

Mecure states that its principal activity is to carry out the business of manufacturing of pharmaceutical products, and distribution of pharmaceutical and nutraceutical products.

The listing documents show the company is currently majority owned by the Udani family with Samir, Avni, Arjun owning 32.29% each or a combined 96.87%. The company did not state how many shares it would be selling upon listing.

However, it stated that it has a total indebtedness of N14.876 billion as of March 2023, which is currently larger than the market capitalization of N11.84 billion It plans to achieve upon listing.

 

Financials

The company also reported a revenue of N26.6 billion in 2022 up from N20.6 billion as of 2021. Details of its 5-year statement indicate revenue has grown from about N15.1 billion in 2018 to what it is in 2022.

The company’s revenue segments include OTC Medicines, Branded Generics, and Dietary Supplements.

The company is also profitable having posted a profit after tax of N2.6 billion (2021: N672.7 million) indicative of earnings per share of N1.3.

The company’s net debt is around N14.6 billion which includes a commercial paper of N5.6 billion, a term loan of N4.5 billion, and a working capital loan of N4.49 billion.

At the current profit of N2.6 billion, the company will be listing at a price-to-earnings multiple of 4.5x

About Mecure

Mecure, established in 2005, is not just a key player in the healthcare sector but also a significant employer, with approximately 850 employees across locations in Abia, Anambra, Kano, and Lagos.

The company’s manufacturing portfolio includes a wide array of pharmaceuticals, such as Ebu 200 & 400 (ibuprofen tablets), Laclox (ampiclox formulation), Lamox (amoxicillin formulation), and Lampicin (ampicillin formulation), all integral to treating various health conditions.

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Beyond its core pharmaceutical production, Mecure is intricately linked with the larger Mecure Group, boasting partnerships with sister companies such as Mecure Healthcare Limited, known for diagnostics; Mecure Infraproject Limited; Mecure Smart Buy Limited; and Mecure Wecare Limited, each playing a pivotal role in fortifying Mecure’s market position.

Cordos Capital Ltd and Cordos Securities Ltd are the Financial Adviser and Stockbroker respectively.

Meanwhile, the Chairman, Mecure Industries Plc, Mr. Samir Udani, yesterday at the company’s fact behind the listing, disclosed that the Pharmaceuticals and Nutraceuticals company aimed to actualised its expansion plans with the listing on the Nigeran Exchange Limited (NGX).

He expressed that the listing is a significant move by the company’s management, stating that a family-run business now in the eyes of the public.

He noted that the listing is going to get Mecure Industries more visibility and bring responsibility, and accountability to shareholders and general stakeholders of the company.

Udani disclosed that 30 per cent of the company’s products are locally made, while the remaining proportions are imported into the country, stressing that there is a lot of scope for local producers to expand and grow amid foreign exchange challenges.

He said assured the investing public of the company introducing new innovations.

On his part, the Chief Executive Officer, NGX, Mr. Temi Popoola stated listing ME Cure industries is a welcome development as healthcare companies are missing from the bourse.

According to Popoola, “If you look at our Exchange today, one of the things that is notably absent is the number of healthcare companies that investors can invest in our Exchange.

“To have a company that sits at the intersection of manufacturing on one hand and manufacturing towards the healthcare sector, we welcome that very much. It broadens the scope of investable assets for us at the Exchange. It also demonstrates what I call the core value that the capital market brings.

“Healthcare, of course, we can t overemphasize the importance to our country and to find a company that is manufacturing healthcare-related products, that has the opportunity through the capital market to raise capital, to amplify its visibility as an example and to help build more sustainable businesses is one that certainly does gladden to our hearts.”

Speaking to the capital market community at the company’s “Facts Behind the Listing”, Chief Financial Officer, Mecure, Mr. Ifedamola Oluwasegun said the company’s principal business includes manufacturing, distribution, and sale of pharmaceutical and nutraceutical products.

“MeCure commenced the trading of nutraceuticals in 2018 and has so far developed 93 products under the flagship of Youthberry,” he said.

According to him, in 2022, the company generated a total of N2.10billion from the sale of nutraceutical products

He added further that “the Company has well-defined and clearly outlined operations, production, and distribution processes, specific to each of its product categories; tablets, capsules, wet syrups, and dry syrups. The processes of the Company have been designed in line with global best practices and in conformance with applicable legislations.”

On management strategy and outlook, he said the company aimed to manufacture beta-lactam tablets and dry syrup with a total cost of N4.5billion on completion and produces Dexamethasone and Prednisolone tablets

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