AXA Mansard Insurance Plc has announced an increase in its authorized share capital from N5.25 billion to N18 billion, indicating a massive rise of 242.9%.
The recent development is part of the resolutions of the Extra-Ordinary General Meeting of AXA Mansard Insurance Plc, sent to the Nigerian Stock Exchange Market and seen by Nairametrics.
On how the additional N12.75 million authorized share capital will be created, the firm proposed the creation of 25,500,000,000 (Twenty Five Billion, Five Hundred Million) ordinary shares of N0.50K each.
Key highlights of the resolutions
- The newly created 25.5 billion ordinary shares of N0.50k were resolved to be issued and allotted as fully paid bonus shares, to registered company’s shareholders as at December 14, 2020 (the Relevant Date); in the proportion of Seventeen (17) new ordinary shares for every Seven (7) ordinary shares held as at the Relevant Date (“the Bonus shares”).
- The capitalization of funds standing to the credit of any of the company’s reserve accounts or to the credit of the profit and loss account or otherwise available for distribution, up to the sum of N12.75 billion. The capitalization is for the purpose of issuing Bonus Shares as fully paid shares to the shareholder
- To round to the nearest whole share or zero in situations where the issuance of the Bonus Shares results in a fraction of a share being held.
- To alter the nominal value of the issued ordinary shares of the Company from 50 kobo to N2.00K each through the consolidation of every four (4) shares held by each shareholder into one (1) share.
- A decision to grant consolidated shares equal rights and restrictions as the existing shares of the Company was reached.
- Finally, the consolidation exercise was fixed for December 31, 2020
What you should know
- Nairametrics had earlier reported that the Nigerian House of Representatives directed NAICOM to suspend the recapitalization of insurance firms.
- According to Investopedia, Authorized share capital, also known as Authorized stock, is the maximum number of stock units (shares) that a company is legally allowed to issue or offer based on its corporate charter. An increase to the Authorized share capital is only possible through shareholder’s approval, after satisfying regulatory requirement.
- Therefore in lieu of this, AXA Mansard Insurance Plc in accordance with Section 102 of CAMA, and Article 40 of the company’s Articles of Association, reported the necessary changes.
- Nairametrics gathered that AXA Mansard Insurance Plc market capitalization is about N23.54 billion, and last closed with share price of N2.28.