AXA Mansard Insurance Plc, a member of AXA, a global insurance and asset management firm said it has concluded its regulatory-driven share capital increase process.
A statement from the underwriters said this followed the National Insurance Commission’s proposed changes to the minimum regulatory requirement on paid-up capital for market expansion.
“The underwriter, having obtained requisite approval from its shareholders has commenced implementation of phase one of its plans,” it stated.
AXA stated that at the extraordinary general meeting which held in December 2020, the company declared bonus issuance for share capital increase from N5.25 billion to N18 billion and consequently, the number of shares outstanding increased from 10.5 billion to 36 billion.
This increased number of outstanding shares was expected to lead to increased share register management cost, impact per-share metrics, and possible wide-ranging implications on future capital raising exercises, it added.
To manage the impact of the bonus share issuance, the company stated that it implemented the second phase of the 2020 approved scheme after receiving the final sets of regulatory approvals which was a capital reconstruction through par value re-domination.
It stated, “This has led to an increase in the nominal value of shares from N0.50 to N2 per share and consequently, reduced the number of outstanding shares from 36 billion units to nine billion units while maintaining the existing shareholding structure.
“The share reconstruction was completed on 27th September 2021 and the reconstructed shares have been credited to each shareholder’s account.
“All shares continue to rank equally in all respects and continue to form a single class of ordinary issued shares of AXA Mansard.”
Commenting on the exercise, the Chief Financial Officer, Mrs Ngozi Ola-Israel, said, “We strive to provide shareholders with the best possible return on their investment while also ensuring that we fully optimise the number of shares in stock.”
