AIICO Insurance Plc has opened application list for acceptance of new shares by existing shareholders as the insurance company seeks to raise N3.49 from its shareholders.
AIICO Insurance is offering 4.36 billion ordinary shares of 50 kobo each at 80 kobo per share. The rights issue has been pre-allotted on the basis of five new ordinary shares of 50 kobo each for every 13 ordinary shares of 50 kobo each held by shareholders as at the close of business on June 15, 2020.
Acceptance list for the N3.49 billion rights issue opened last Wednesday and will run till October 7, 2020.
The Board of Directors of AIICO Insurance had earlier recommended a scrip dividend that will see the insurance company distributing one ordinary share as bonus share for every five ordinary held by the shareholders as at Thursday, June 25.
AIICO Insurance had earlier consummated a capital injection that saw new strategic investors acquiring 38.83 per cent equity stake in the company. The acquisitions were done through a private placement.
AIICO Insurance offered 4.4 billion ordinary shares of 50 kobo each at N1.20 per share to raise N5.28 billion. The additional shares issued under the private placement increased AIICO Insurance’s issued share capital from 6.93 billion ordinary shares of 50 kobo each to 11.33 billion ordinary shares of 50 kobo each.
READ ALSO: Lionel Messi To Rejoin Barcelona Training Monday
Shareholders of AIICO Insurance had at the Annual General Meeting (AGM) in 2016 authorised the board of directors to raise new capital to bolster the operations of the insurance company. The new equity fund will boost the capital base of AIICO Insurance as the Nigerian insurance industry seeks to meet new minimum capital base for various insurance functions.
Insurance companies are in a hot race to raise new equity capital to meet new minimum capital requirements for various insurance functions as directed by the National Insurance Commission (NAICOM). NAICOM had in May 2019 released new capital requirements for insurance businesses with a 13-month compliance period for operators to shore up their minimum capital base to the required level.
The minimum paid-up share capital of a life insurance company was increased from N2 billion to N8 billion, non-life insurance from N3 billion to N10 billion, composite insurance from N5 billion to N18 billion while re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.
The Nation
