Dipo Olowookere
By Dipo Olowookere
The management of AIICO Insurance Plc has revealed the strategy it intends to deploy to boost its share price on the floor of the Nigerian Stock Exchange (NSE).
The Managing Director/CEO of the underwriting firm, Mr Babatunde Fajemirokun, while addressing some market participants recently, said his team will adopt a regular management/shareholders engagement policy to support the equity price of the company.
However, he stressed that this plan will likely kick off in 2021, noting that the platform would be used to update investors on the various plans being put in place by the management to improve the performance of the company.
“In 2021, we will focus on a management-shareholder [strategy] to boost the share price [of the company at the exchange],” Mr Fajemirokun said when he addressed the market on the fact behind the rights issue of the organisation.
On Wednesday, September 2, 2020, AIICO Insurance commenced its N3.5 billion rights issue aimed to raise the capital base of the company in compliance with the new regulations of the National Insurance Commission (NAICOM).
The rights issue is expected to run through Wednesday, October 7, 2020, and during the period, the underwriter will offer a total 4,357,770,954 ordinary shares of 50 kobo each at 80 kobo per unit on the basis of five new ordinary shares for every 13 ordinary shares held as at the close of business on Monday, June 15, 2020.
The company’s shareholders now have the opportunity to increase their stakes and reposition themselves in a company with excellent prospects.
Business Post reports that last Friday, the share price of AIICO Insurance closed at 72 kobo per unit but at the time of filing the story on Monday morning, it was up by 7 kobo to 79 kobo per unit.
Recently, AIICO Insurance said it was in talks with FCMB for the sale of its pension business, AIICO Pensions Managers Limited, to FCMB Pensions Limited.
According to Mr Fajemirokun, proceeds from the deal would be used to sort the company’s liabilities.
