AIICO Seeks NSE Approval for N3.5bn Rights Issue

AIICO rights issue

By Modupe Gbadeyanka

The board of AIICO Insurance Plc is seeking the approval of one of the regulatory agencies for the listing of its rights issue.

The insurer plans to raise about N3.5 billion from the exercise as parts of its efforts to meet the minimum capital requirement of the National Insurance Commission (NAICOM).

To raise fresh funds, the company is proposing to sell to its existing shareholders a total of 4,357,770,954 ordinary shares of 50 kobo each at a unit price of 80 kobo.

According to the firm, the rights issue would be allotted on the basis of five new ordinary shares for every 13 ordinary shares held by investors as at the close of business of Monday, June 15, 2020.

A while ago, AIICO Insurance, through its stockbroker, Magnartis Finance and Investment Limited, submitted an application to the Nigerian Stock Exchange (NSE) for the approval and listing of the rights issue.

This development was confirmed by the Head of Listings Regulation Department of the NSE, Mr Godstime Iwenekhai, in a notice to the investment community.

Mr Iwenekhai said, “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 (NSE) for the approval and listing of a rights issue of 4,357,770,954 ordinary shares of 50 kobo each at 80 kobo per share, on the basis of five new ordinary shares for every 13 ordinary shares held.

“The qualification date for the rights issue is today, Monday, June15, 2020.”

In February 2020, Business Post reported that a new investor, LeapFrog III Nigeria Insurance Holdings Limited, acquired about 39 percent equity stake in the firm.

LeapFrog, through a private placement, paid about N5.3 billion for the transaction by purchasing 4.4 billion units of AIICO Insurance stocks at N1.20 each.

Last month, the Managing Director of AIICO Insurance Plc, Mr Babatunde Fajemirokun, purchased almost 2.3 million units of the insurance company’s equities at the market in two tranches, coughing out about N2.025 million to execute the transactions.

In the first three months of this year, the underwriter reported a 129 percent growth in Profit after Tax (PAT) to N1.9 billion from N820 million reported in the first three months of last year.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

more recommended stories

%d bloggers like this: