The suspension placed in the trading of equities of NEM Insurance Plc has been lifted by the Nigerian Exchange (NGX) Limited, a circular from the bourse has been confirmed.
The embargo was removed following the conclusion of the share capital reconstruction of the underwriting company.
The exercise resulted in the changing of the entire issued share capital of the company’s 10,032,955,535 ordinary shares of 50 Kobo each at N2.42 per share to 5,016,477,767 ordinary shares of N1.00 each at N4.84 per share.
After the share reconstruction, the old stocks were delisted from the exchange, while the new ones were listed on the trading platform today, according to the disclosure.
“We refer to our market bulletin of December 24, 2021, with reference number: NGXREG/LRD/MB60/21/12/24, wherein the market was notified that the full suspension placed on trading in the shares of NEM Insurance Plc was extended to December 29, 2021, to enable listing of the company’s reconstructed shares on the NGX.
“Trading license holders and the investing public are hereby notified that the suspension placed on trading in the company’s shares was lifted today, Wednesday, December 29, 2021, following the completion of NEM Insurance’s share capital reconstruction.
“Consequent to the completion of the share reconstruction exercise, NEM Insurance’s entire issued share capital of 10,032,955,535 ordinary shares of 50 Kobo each at N2.42 per share was delisted from NGX’s daily official list while the 5,016,477,767 ordinary shares of N1.00 each at N4.84 per share arising from the share capital reconstruction were listed on NGX’s daily official List on the same day.
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“With the completion of the company’s share capital reconstruction, the total issued and fully paid-up shares of NEM Insurance Plc has now reduced from 10,032,955,535 ordinary shares of 50 Kobo each to 5,016,477,767 ordinary shares of N1.00 each while the market capitalisation remained at N24,279,752,394.70,” the notice said.
What you should know
NEM Insurance had earlier fixed a period of two weeks for the reconstruction of shares from a nominal share value of N0.50 to N1.00 by the consolidation of every two (2) shares held by each shareholder into one (1) share.
It stated that the shares of the company will be suspended from trading on the Nigerian Exchange Limited for two (2) weeks beginning on Friday, 10 December 2021 to Thursday, 23 December 2021 both days inclusive.
It also noted that the register of shareholders shall be closed for this period to enable the Central Securities Clearing Systems Plc. (CSCS) and Apel Capital Registrars Limited – the Registrars to NEM Insurance, to finalise the Reconstruction of the shares and produce a new Register for the Company.
At the AGM, the group managing director/CEO of the company, Tope Smart said: “with regard to the issue of recapitalisation, the National Insurance Commission (NAICOM) having looked at the impact of COVID-19 on the recapitalisation of insurance industry decided to break the exercise into two phases. Insurance companies were required to meet up with 50 per cent of their required capital by December 31, 2020 while full compliance was scheduled to be attained by September 30, 2021.
“We met the first phase by capitalising our share premium and part of our retained earnings to bring our Paid-Up Capital to N5.016 billion. This was achieved through the issuance of bonus shares to all existing shareholders.”
The company’s full-year forecast for the 2021 financial year expects that its pre-tax profit of N2.4 billion at the end of the third quarter would advance to N4.5 billion at full year while tax expenses would increase from N379 million to N455 million over the same period.
