Mecure Industries Plc will on Wednesday, 8 November 2023 list 4 billion ordinary shares on the Nigerian Exchange at N2.96 per share.
At the point of listing the company will have a market capitalization of N11.84 billion.
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Mecure’s principal activity is to carry out the business of manufacturing of pharmaceutical products, distribution of pharmaceutical and nutraceutical products.
The purpose of the listing as published by the company is to, 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 if and when required.
The shares will be listed by Introduction and will be on the Growth Board of the Nigerian Exchange Limited.
The Growth Board of the NGX is designed to encourage small-cap and growth-oriented companies to leverage the capital market to raise long-term capital, stimulate growth, and promote liquidity.
Listing by introduction occurs when a company takes its existing shares and lists them on an exchange.
On its Instagram handle, NGX stated that the listing will be celebrated with a Closing Gong ceremony, during which the Mecure Industries management will also engage capital market stakeholders through a “Facts Behind the Listing” presentation.
Samir Udani, Chairman of the company, Avni Udani, and Arjun Udani, both Co-Chief Executive Officers of the company, currently hold 32.29% each of the shares of the company.
About the company
Mecure was incorporated on 16th March 2005 as a private limited liability company and commenced operations on
August 17, 2005.
The Company is principally in the business of manufacturing drugs (tablets, capsules and syrups) in Nigeria under two (2) categories namely Pharmaceuticals and Nutraceuticals.
The Pharmaceuticals segment comprises of forty-one (41) drugs such as Ebu 200 & 400 (ibuprofen tablets), Laclox (an ampiclox formulation), Lamox (an amoxicillin formulation) and Lampicin (an ampicillin formulation), used in treating different ailments.
The Nutraceuticals segment consist of 100 products including multivitamins and dietary supplements, the majority of which are imported from Youthberry (an American supplement manufacturing company).
While the Nutraceuticals segment is largely a trading line, the Company produces its pharmaceuticals drugs (predominantly branded generics) with support from its research and development team at its factory at Debo Industries Compound, Oshodi, Lagos State.
The Company’s products and services include acute ailment medication, chronic ailment medication, nutraceuticals, multivitamins and a planned expansion into chemotherapy medication.
Mecure is a member of the Mecure Group and has four sister companies – Mecure Healthcare Limited (engaged in diagnostics), Mecure Infraproject Limited, Mecure Smart Buy Limited and Mecure Wecare Limited.
Mecure’s head office (where its production plant is sited) is located at Plot 6, Block H, Debo Industries Compound, Oshodi Apapa Expressway, Oshodi, Lagos State.
The Company owns four depots in Anambra, Abia, Lagos and Kano States (due to wider customer acceptance and less competition in those markets) and a distribution network consisting of over 100 distributors that facilitate the circulation of the Company’s products across Nigeria.
Financials
Mecure stated that as at March 31, 2023, it had a total indebtedness in the ordinary course of business amounting to ₦14,876,090,000.00.
A review of its statement of comprehensive income shows that it has grown its revenue consistently from N15.17bn in 2018 to N26.64bn in 2022.
Its profit after tax for the past five years has also shown similar growth, rising from N427.54mn in 2018, to N2.60bn in 2022.
The company’s balance sheet shows a total assets value of N26.99bn as at the end of the 2022 financial year. These assets were funded by N17.67bn liabilities and N9.31bn shareholders fund.
At the end of 2022 financial year, Mecure Industries Plc had a cash and cash equivalent of N31.75mn.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
