AIICO to list additional 4.3bn shares at NSE

AIICO Insurance Plc has submitted an application to the Nigerian Stock Exchange, seeking approval for some 4.3 billion ordinary shares of N0.50 each which it plans to list on the Nigerian bourse.

A statement signed on Monday by Godstime Iwenekhai, the NSE’s head of listing regulation, said the application for the rights issue was submitted by Magnartis Finance and Investment Limited, AIICO’s stockbroker.

It was further disclosed that the shares would be purchased at N0.80, on the basis of five new ordinary shares for every thirteen shares already held by the company’s shareholders.

The notice further informed dealing members in the market that the qualification date for the rights issue is today, June 15, 202, for interested investors to be informed and take the necessary action.

“Dealing Members are hereby notified that AIICO Insurance Plc has through its Stockbroker, Magnartis Finance and Investment Limited, submitted an application to The Nigerian Stock Exchange for the approval and listing of a Rights Issue of Four Billion, Three Hundred and Fifty Seven Million, Seven Hundred and Seventy Thousand, Nine Hundred and Fifty Four (4,357,770,954) ordinary shares of Fifty Kobo (N0.50) each at Eighty Kobo (N0.80) per share, on the basis of five (5) new ordinary shares for every thirteen (13) ordinary shares held,” the statement said.

At its Annual General Meeting (AGM) in March this year, AIICO’s shareholders had voted in favour of a plan to raise additional capital through rights issue in its bid to meet recapitalization obligation set for insurance companies in the country by their regulator, the National Insurance Commission (NAICOM).

Meanwhile, earlier reports showed that two strategic investors completed private placements in the company, thereby bring its paid up share capital to N11.3 billion, up from N6.1 billion.

The rights issue is, therefore, expected to raise the outstanding capital in order to complete the recapitalisation exercise before the new deadline of September, 2021 set by NAICOM.