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Mecure lists on NGX, plans IPO

MeCure Industries Plc has revealed its plans to raise funds via an Initial Public Offer as it is listed on the Nigerian Exchange Limited.

It stated this during its Facts Behind The Listing presentation held at the NGX on Wednesday.

The Chief Finance Officer/Senior Vice President (Finance), Ifedamola Oluwasegun, said, “Today, what we are doing is listing by introduction. We are not here to raise money. We have listed 500,000 available to trade. Over the next few years, it will significantly increase it all the way to 20 per cent of the company.

“Apart from the statutory listing, yes we are looking at going into an IPO in the coming years. We are learning. So, let’s start our journey and get there.”

Ifedamola pointed out that the portion of private expenditure on healthcare in Nigeria was 75 per cent, thus presenting an opportunity for the company.

“Looking at trends in the sector, we have seen that after COVID-19, a lot of people are taking their health a lot more seriously. They go for regular checkups and take their vitamins. There is increased use of technology and there is support by the government.

“There were a lot of interventions from 2020 till now by the government. However, there is still a lot of reliance on imports. Like our chairman said earlier, about 70 to 75 per cent of manufactured products are still imported into Nigeria today.”

In terms of its financials, MeCure’s revenue in the first nine months of 2023 grew by four per cent to N21.58bn while its finance cost rose by 39 per cent to N1.71bn from N1.23 as of September 2022.

Ifedamola blamed the hike in finance costs on interest rate hikes by the Central Bank of Nigeria to tackle stubborn inflation as well as its expansion drive which had resulted in increased borrowing.

The firm’s profit after tax moderated by 0.39 per cent to N1.987bn from N1.995bn and its total assets stood at N34.53bn as of September ending with liabilities at N23.22bn.

On the outlook of the company, Ifedamola said, “Some of you may know the drug called Augmentin and you have seen the price shooting up in the market that is because what you typically have is imported. We will be first to manufacture that locally in Nigeria.

The goal under its Beta-lactam department would see the manufacturing of tablets and dry syrup of the drug in Nigeria with a projected revenue impact of N8bn in 2024 at 70 per cent capacity utilisation and N12bn in 2025.

Ifedamola added that MeCure was working on a steroid manufacturing plant in the country.

Speaking at the presentation, the Executive Director, Capital Markets, Nigerian Exchange Limited, Jude Chiemeka, said,  “I welcome MeCure Industries for taking the initiative to be listed on our market. The exchange continues to be a rewarding partner and will continue to provide advocacy for listed corporates, especially in the areas of tax breaks.

“What we have seen is that listed companies are usually a lot more compliant tax-wise and because of the heightened level of corporate governance within their structure, they tend to provide a bit of employment for the many youths we have in the country.”

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