Prestige Assurance is set to raise N6,817,898,003 through the issue of 13,635,796,006 shares at N.50 kobo per share, to meet up regulatory requirements and enhance its business operations.
The firm disclosed this at the signing of its proposed Rights Issue on Tuesday.
The rights issue is part of Prestige Assurance’s recapitalisation strategy in response to the regulatory directive from the National Insurance Commission (NAICOM) and path towards the implementation of the company’s medium-term strategy.
Read also: Our Target is to close year 2020 with Two Hundred Billion Naira balance sheet – MD, Jaiz Bank
NAICOM has mandated a minimum recapitalisation for general insurance business in Nigeria of N10 billion in admissible Share Capital by September 2021 and with this, the firm has said it intends to prosecute towards becoming a top industry player over the medium term of 5 to 7 years.
Speaking at the signing ceremony, chairman of Prestige Assurance, Doyin Salami said: “We are inviting investors to our business and at the very least, we are able to say that not only have we been around for the entirety of Nigeria’s post independent bit, we are also able to say that even in the worst time, this company not only have we weathered it, we have come out much stronger.”
“As far as Prestige is concerned, the future is very bright. Prestige has already started the process even ahead of planning for the future. The intension over the next 5 to 7 years is to be one of the top 5 insurance companies operating in general insurance business in Nigeria.”
Speaking further, the chairman said: “As we open our rights issue, inviting subscription to 13,635,796,006 our intention is to raise additional capital to grow our business. Although regulatory inspired, but we intend to make the best of this inspiration.”
He explained that the resources would provide the company with the capital to do a number of things such as development of products that are in tune with the aspirations of Nigerians.
Speaking also, Diekola Onaolapo, the CEO of Eczellon Capital, the issuing house, said: “We are pleased to have the signing ceremony after obtaining the requisite approvals from the Securities & Exchange Commission (SEC) and the Nigerian Stock Exchange.”
Responding to a question about the recapitalisation prospect, he added: “It is our opinion that the Nigerian insurance industry requires a deepening and we are in agreement with the policy drives of NAICOM.
