The Board of Directors of Mutual Benefits Assurance Plc. has secured permission to raise the sum of N4.8 billion through private placement.
This is according to a disclosure signed by the company’s Secretary, Jide Ibitayo and seen by Nairametrics.
The disclosure is part of the resolutions reached at the Extra-Ordinary General Meeting of the firm and sent to the Nigerian Stock Exchange, dated December 3, 2020.
According to the information contained in the notification, the private placement worth N4.8 billion is to be raised through the sale of 8,888,888,889 ordinary shares of 50 kobo each of the company, at the rate of 54 kobo per share, in a distribution succinctly captured below:
- 5,331,004,445 units (approximately 60% of the total allotted units) is to be sold to Charles Enterprises LLC for about N2.88 billion.
- The remaining 3,557,844,444 (approximately 40% of the total allotted units) is to be sold to Arubiewe Farms Ltd for about N1.92 billion.
What this means
- According to Investopedia, a private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.
- In this light, it is pertinent to note that private sales are now common for start-ups, as they allow the company to obtain the money they need to grow while delaying or foregoing an IPO.
What you should know
Other key resolutions reached at the Extra-Ordinary General Meeting include:
- Raising the company’s authorized share capital from N10 billion to N10.05 billion.
- To raise additional capital via the issue of debt or equity or a combination of both including convertible bonds, loans, stock, bonds with options etc.
- Amendment of clause 6 of the Memorandum and clause 5 of the Articles of Association of the company respectively.
Nigerian stock market soars as UNITYBNK and JAPAULGOLD plummet
The All-Share Index increased by +0.29% to close at 39,312.74 from 39,198.75.
The Nigerian stock market maintained a bullish recovery as the trading session began this week. This surge was bolstered by gains made by UBN and AFRIPRUD amongst others. The All-Share Index increased by +0.29% to close at 39,312.74 from 39,198.75.
- The Nigerian stock exchange market value currently stands at N20.44 trillion. Its Year-to-Date (YTD) returns currently stand at -2.38%.
- The market breadth closed positive with the bulls as REGALINS led 28 Gainers and UNITYBNK topped the chart of 15 Losers showing a hint of consolation.
1. REGALINS up +9.68% to close at N0.34
2. ABCTRANS up +9.68% to close at N0.34
3. UBN up +9.26% to close at N5.90
4. LINKASSURE up +8.70% to close at N0.75
5. MBENEFIT up +8.11% to close at N0.40
1. UNITYBNK down -8.33% to close at N0.55
2. JAPAULGOLD down -6.67% to close at N0.56
3. NEIMETH down -6.04% to close at N1.71
4. FLOURMILL down -4.84% to close at N29.50
5. NAHCO down -4.55% to close at N2.10
The stock market maintained the recovery as Union bank and LINKASSURE made an appearance for the second consecutive time, pushing the NGX ASI upwards at the end of the trading session today.
- Market sentiments were bullish as the NGX ASI closed with 28 Gainers and 15 Losers.
- Nairametrics advises cautious buying in this era of growing uncertainties.
Dow hits all-time high as energy stocks surge
The DOW gained 7.5 points, or 0.02%, to open at 34785.27 Index points.
At the opening bell, the Dow Jones Industrial Index (DOW) hit an all-time high as the commodity and energy markets are bullish.
The DOW gained 7.5 points, or 0.02%, to open at 34785.27 index points. The S&P 500 fell 4.3 points, or 0.10%, to open at 4228.29, while the Nasdaq Composite dropped 64.6 points or 0.47% to open at 13687.595.
This represents an optimism that interest rates would remain lower for longer, while a surge in commodity prices lifted shares of miners, energy and steel companies.
More details soon…
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