The shares of AXA Mansard Insurance Plc will be suspended from trading on the Nigerian Exchange Limited (NGX) on Thursday September 9, 2021 to enable the shareholders’ register be updated with the reconstructed shares.
Share reconstruction, also known as reverse stock split is a mechanism used by companies to reduce the number of outstanding shares and increase their share price proportionately without affecting the total book value of those shares. It decreases the number of shares, but not the value of shares held by shareholders.
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AXA Mansard Insurance Plc has 36billion in shares outstanding –that is those currently held by all its shareholders, including share blocks held by institutional investors and company insiders.
The stock was priced at 88kobo per share as at Tuesday, September 7. At that price, the stock has decreased by 16.2percent this year.
Once this is concluded, the suspension will be lifted and trading on the shares shall recommence. Following the Extraordinary General Meeting (EGM) of AXA Mansard Insurance Plc held on Monday December 7, 2020 the Company secured the approval of its shareholders for the share reconstruction / redenomination of AXA Mansard’s shares from a nominal share value of N0.50 to N2.
Following the above shareholders’ approval, the Company also received necessary regulatory approvals from the National Insurance Commission (NAICOM) on Monday July 19, 2021 and the Securities & Exchange Commission (SEC) on Monday August 16, 2021 respectively.
