AXA Mansard shares to be suspended ahead of reconstruction -

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.

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By Iheanyi Nwachukwu • September 8, 2021

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.