AIICO Insurance has applied to the Nigerian Stock Exchange (NSE) for the approval and listing of 4,357,770,954 ordinary shares of 50 kobo each at 80 kobo per share for five new ordinary shares on every 13 ordinary shares held.
Head, Strategic Marketing and Communications, Segun Olalandu, in a statement noted that shareholders now have the opportunity to increase their stake and position themselves for higher returns in a company with excellent prospects.
He stated that the company's recapitalisation journey started when the National Insurance Commission (NAICOM) planned to increase the capacity of the industry to take on more risks.
'Responding to this, he said, ''AIICO quickly articulated a clear path to meet the new minimum regulatory capital requirement. The company followed through with regular communications at all stages in the execution of the strategy with its shareholders, who have been supportive of the efforts.
'In February 2020, the company completed its private placement successfully with 38.83 percent of its shares snapped up by two strategic investors, LeapFrog Nigeria Insurance Holdings Limited (28.24 per cent) and AIICO Bahamas Nigeria Limited (10.59 per cent), raising the share capital from N6.1billion to N11.3billion.
'The Rights Issue is expected to generate N3.5billion, bringing the company closer to meeting the required minimum paid-up capital of N18 billion. The exercise will be followed subsequently with a capitalisation (bonus) issue, which has a qualification date of September 23, 2020.'
© Pakistan Press International, source Asianet-Pakistan