AIICO Insurance Plc has submitted an application to the Nigerian Stock Exchange, seeking approval for some 4.3 billion ordinary shares of N0.50 each which it plans to list on the Nigerian bourse.
A statement that was signed by Godstime Iwenekhai, the NSE’s head of listing regulation, said the application for the rights issue was submitted by the insurance firm’s stockbroker – Magnartis Finance and Investment Limited.
It was further disclosed that the shares would be purchased at N0.80, on the basis of five new ordinary shares for every thirteen shares already held by the company’s shareholders.
Note that the qualification date for the rights issue is today, June 15, 2020. Interested investors are, therefore, advised to be informed and take the necessary action.
“Dealing Members are hereby notified that AIICO Insurance Plc has through its Stockbroker, Magnartis Finance and Investment Limited, submitted an application to The Nigerian Stock Exchange for the approval and listing of a Rights Issue of Four Billion, Three Hundred and Fifty Seven Million, Seven Hundred and Seventy Thousand, Nine Hundred and Fifty Four (4,357,770,954) ordinary shares of Fifty Kobo (N0.50)
each at Eighty Kobo (N0.80) per share, on the basis of five (5) new ordinary shares for every thirteen (13) ordinary shares held,” the statement said.
Recall that AIICO’s shareholders had, in March this year, voted in favour of a plan to raise additional capital through rights issue.
An earlier report by Nairametrics noted that the insurance company was closer to meeting the recapitalisation requirement that was set forth by the National Insurance Commission, NAICOM.
Recently, two strategic investors completed private placements in the company, thereby bring its paid up share capital to N11.3 billion, up from N6.1 billion. The rights issue is, therefore, expected to raise the outstanding capital in order to meet the recapitalisation requirement.
Meanwhile, NAICOM earlier this month extended the deadline for the recapitalisation till 2021.
The recapitalisation programme is requiring life insurance firms to meet a minimum paid-up capital of N8.0 billion, up from N2.0 billion previously. In the same vein, general insurance companies are required to raise their minimum paid-up capital to N10.0 billion from N3.0 billion previously.
The regulatory capital for composite insurance was raised to N18.0 billion from N5.0 billion previously while reinsurance businesses are now required to have a minimum capital of N20.0 billion from a previous N10.0 billion.