Prestige Assurance Plc has announced its resolve to raise fresh capital by way of share offering to the tune of 14 billion shares.
All things being equal, the underwriter will create an additional 14 billion ordinary shares of 50 kobo each once the resolution is approved at its next Annual General Meeting (AGM). The AGM is scheduled to hold on 29th July 2019 at AGIP Recital Hall, Muson Centre, Onikan, Lagos.
This agenda, along with other propositions for the company’s 49th AGM, is contained in a notice signed by the Company Secretary and issued to the Nigerian Stock Exchange.
What this means: The proposed share offering will take the company’s Authorised Share Capital from the current 6 billion ordinary shares of 50 kobo each to 20 billion; all will rank pari passu. In Naira terms, the value of the Authorised Share Capital will be increased from the current N3 billion to N7 billion.
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Purpose of the capital raise: The share offering will enable Prestige Assurance to meet the new recapitalisation requirements of the National Insurance Commission ahead of the deadline.
Recall that the National Insurance Commission (NAICOM) had last month ordered insurance firms to recapitalise within 13 months or forfeit their licenses. It increased the minimum paid-up share capital of life insurance companies from N2 billion to N8 billion, that of non-life insurance from N3 billion to N10 billion, that of Composite Insurance from N5 billion to N18 billion and that of re-insurance companies from N10 billion to N20 billion.
Company to declare dividend: The statement further disclosed that a dividend will be declared in the course of the meeting, subject to shareholders’ approval.
If approved, shareholders’ with e-dividend mandate whose names appear in the register of members as of the close of business on Friday 3rd May 2019, will be credited on 31st July 2019.
Prestige Assurance closed trading at N0.50 per share on the Nigerian Stock Exchange.
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