Mecure Industries Plc to List on NGX with N11.84 Billion Valuation

Mecure Industries Plc, a leading healthcare company in Nigeria, is set to list on the Nigerian Exchange Group (NGX) by introduction on November 8, 2023. The company, which manufactures and distributes pharmaceutical and nutraceutical products, will list 4 billion ordinary shares at N2.96 per share, giving it a market capitalization of N11.84 billion.

The company, which was established in 2005, has a net asset value of N9.3 billion and a retained earnings of N7.3 billion as of its latest financial statements. The company said that the listing will enable it to create liquidity for its shares in the secondary market and access a platform for raising long-term capital in the future from a wide range of domestic and international investors.

The company’s revenue for 2022 was N26.6 billion, up from N20.6 billion in 2021. The revenue was derived from three segments: over-the-counter (OTC) medicines, branded generics, and dietary supplements. The company’s profit after tax for 2022 was N2.6 billion, up from N672.7 million in 2021, translating to an earnings per share of N1.3.

The company’s investment portfolio includes a variety of pharmaceutical products, such as Ebu 200 & 400 (ibuprofen tablets), Laclox (ampiclox formulation), Lamox (amoxicillin formulation), and Lampicin (ampicillin formulation), which are used to treat various health conditions. The company also has partnerships with other companies within the Mecure Group, such as Mecure Healthcare Limited, which provides diagnostics; Mecure Infraproject Limited; Mecure Smart Buy Limited; and Mecure Wecare Limited, which enhance its market position.

The company’s total indebtedness as of March 2023 was N14.876 billion, which exceeds its market capitalization of N11.84 billion. The debt consists of a commercial paper of N5.6 billion, a term loan of N4.5 billion, and a working capital loan of N4.49 billion. The company’s net debt is N14.6 billion.

The company’s rental income of N1 billion implies a rental yield of 4.3% based on its investment property value of N23 billion. When annualized, the rental yield is 5.6%, which is lower than the average rental yield in Nigeria and the inflation rate.

The company is currently majority owned by the Udani family, with Samir, Avni, and Arjun owning 32.29% each or a combined 96.87%. The company did not disclose how many shares it will sell to the public upon listing.

Cordos Capital Ltd and Cordos Securities Ltd are the financial adviser and stockbroker for the listing, respectively.

The company’s ticker symbol on the NGX will be MECURE. The company’s current share price is N3.45 per share and has appreciated by 16.95% in the last year.