Guinea Insurance Plc has applied to the Nigerian Exchange (NGX) for approval to raise N5.30 billion through a rights issue, as part of strategic efforts to strengthen its capital base and align with new regulatory minimum capital standards.
The proposed offer, involving 5,295,200,000 ordinary shares at N1.10 per share, is structured on the basis of two new shares for every three existing shares, with a qualification date of January 21, 2026, for eligible shareholders.
The application, submitted through stockbrokers Forte Financial Limited and Mega Equities Limited, is now awaiting regulatory approval and listing by NGX. Upon clearance, transfer agents will dispatch rights circulars and communicate the offer timetable.
What the underwriter is saying:
Guinea Insurance Plc is seeking NGX approval to conduct a rights issue aimed at raising capital. This is contained in the market bulletin with reference number NGXREG/IRD/MB8/26/01/21, sighted by Nairametrics on Thursday.
The company, through its stockbrokers Forte Financial Limited and Mega Equities Limited, plans to offer 5,295,200,000 ordinary shares of 50 kobo each at N1.10 per share.
According to the notification, the offer is structured on the basis of two new shares for every three existing shares held.
Only shareholders on record at the close of business on 21 January 2026 are eligible to participate.
What you should know
The rights issue unfolds against significant regulatory reform in Nigeria’s insurance industry, driven by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which was signed into law on July 31, 2025.
- The Act introduces comprehensive changes to industry supervision, including higher minimum capital requirements (MCR) and the adoption of a risk-based capital (RBC) framework to ensure insurers hold capital commensurate with underwriting risks.
- Under the new regime, life insurance firms must maintain a minimum capital base of N10 billion, while non-life/general insurers are required to hold at least N15 billion, and reinsurance companies must have N35 billion or more.
- The reforms give NAICOM sweeping powers to mandate higher capital levels based on risk profiles and even cancel licences for firms that fail to recapitalise within the stipulated period.
NAICOM has issued detailed guidelines on the recapitalization process, including the submission of recapitalization plans and quarterly progress reports, capital verification procedures, and evidence requirements for admissible assets.
All insurers and reinsurers are required to comply with the new MCR on or before July 30, 2026, with heavy consequences for non-compliance.
Stock price performance on NGX
The stock closed on Thursday, January 22, 2026, at N1.30 per share. Guinea began the year with a share price of N1.33 but has since lost 2.26% off that price valuation, ranking it 141st on the NGX in terms of year-to-date performance.
The penny stock as of early January 2025 rose to N1.77 per share on August 22, 2025, before dropping to N0.96 kobo on December 11, 2025, before rising to close at N1.33 per share on December 31, 2025.
With 7.94 billion shares outstanding and a market capitalization of N10.3 billion, the stock is currently the 110th most valuable stock on the NGX and about 0.0098% of the NGX equity market value.
