By Dipo Olowookere
The rights issue proposed by the board of Wapic Insurance Plc for the raising of fresh capital from its shareholders has been approved by the Nigerian Stock Exchange (NSE).
Business Post confirmed that the application filed by Wapic Insurance through its stockbroker, Coronation Securities Limited, was approved on Monday September 23, 2019 after satisfying the requirements.
Wapic Insurance plans a rights issue of 15,613,194,623 ordinary shares of 50 Kobo each at 38 Kobo per share on the basis of seven new ordinary shares for every six ordinary shares held as at the close of business on September 19, 2019.
From this exercise, the company hopes to raise the sum of N5.9 billion and expect this to help achieve its plan to increase its capital base to meet the new requirements of its industry regulator, the National Insurance Commission (NAICOM).
Business Post reports that the lead issuing house for the exercise is Chapel Hill Denham Advisory Limited, while the joint issuing house is Coronation Merchant Bank Limited.
Recall that on Friday, September 20, 2019, the Head of Listings Regulation Department at the NSE, Mr Godstime Iwenekhai, disclosed in a circular that the insurance firm has applied to carry out rights issue worth N5.933 billion.
It was stated that the company, through its stockbrokers, Coronation Securities Limited, filed the application for the regulatory approval for the exercise, which has a qualification date of Thursday, September 19, 2019.
According to the notice, the firm is selling the shares to its shareholders at the price of 38 kobo each on the basis of seven new equities for every six previously held.
The application was filed after shareholders of the insurance company gave authorization to the board to raise additional capital up to N6.5 billion so as to meet the new recapitalisation policy NAICOM.
Adedapo Adesanya