AIICO Insurance seeks NSE approval, listing of N3.5bn Rights Issue

The Nigerian Stock Exchange (NSE) notified its Dealing Members that AIICO Insurance Plc through its joint stockbrokers, Magnartis Finance and Investment Limited and Stanbic IBTC Stockbrokers Limited, submitted an application to The Exchange for the approval and listing of a Rights Issue of 4,357,770,954 ordinary shares of 50kobo each at 80kobo per share.

The Rights Issue is on the basis of 5 new ordinary shares for 13 ordinary shares held. The Qualification Date for the Rights Issue is Monday June 15, 2020, according to a circular to the dealing members signed by Godstime Iwenekhai, Head, Listings Regulation, NSE.

AIICO Insurance had at an Extraordinary General Meeting (EGM) of the company held on Thursday, March 5, 2020 sought approval of shareholders of the company to raise additional capital in line with the new regulatory requirements.

The move by AIICO Insurance to raise additional capital is to meet the regulatory requirements of N18 billion capital base for Composite insurance companies as directed by National Insurance Commission (NAICOM).

The new capital structure for Life, Non-Life and Composite insurance companies, including reinsurance companies, were increased from N2 billion, N3 billion, N5 billion and N10 billion to N8 billion, N10 billion, N18 billion and N20 billion respectively.

Subject to the approval of regulatory authorities and pursuant to Article 44 of the Articles of Association of the company, the directors of the company were authorized by shareholders to raise, by way of a rights issue, addition capital of up to N3.5 billion or any higher as determined by the board of directors by way of issuance of ordinary shares to the existing shareholders of the company.