Dipo Olowookere
By Dipo Olowookere
The share capital reconstruction embarked upon by LASACO Assurance Plc has been completed and the suspension placed on the company lifted.
The Nigerian Stock Exchange (NSE) had on February 1, 2021, suspended trading in the shares of the organisation on its platform.
This was to allow the process of the share reconstruction to run smoothly.
Share capital reconstruction is the process of reducing the listed shares of a company for better value. The process involves merging shares together at a given ratio.
In the case of LASACO Assurance, it merged four equities into one and this reduced its total issued and fully paid-up shares to 1,833,585,855 ordinary shares of 50 kobo each from 7,334,343,421 ordinary shares of 50 kobo each.
To break it down further, a shareholder of LASACO Assurance with 100 units of the company’s equities will be left with only 25 units after the exercise.
So, after the share reconstruction of LASACO Assurance was concluded, the equity price moved from 42 kobo per unit to N1.68 per unit on Monday morning.
This development was confirmed by the NSE in a circular issued to dealing members today.
“We refer to our market bulletin of February 1, 2021, with reference number: NSE/RD/LRD/MB07/21/02/01, wherein the market was notified that trading in the shares of LASACO Assurance Plc was placed on full suspension effective Monday, February 1, 2021, as a result of the company’s proposed share capital reconstruction.
“Also refer to the subsequent extension of the suspension communicated to the market through our market bulletin of February 16, 2021, with reference number: NSE/RD/LRD/MB10/21/02/16.
“Dealing members are hereby notified that the full suspension placed on trading in the company’s shares was lifted on Monday, February 22, 2021, following the completion of the share capital reconstruction.
“Consequent to the completion of the reconstruction exercise, LASACO’s entire issued share capital of 7,334,343,421 ordinary shares of 50 kobo each at 42 kobo per share prior to the share capital reconstruction was delisted from the NSE’s daily official list, while the 1,833,585,855 ordinary shares of 50 kobo each at N1.68 per share arising from the share capital reconstruction were listed on the exchange’s daily official list on the same day.
“With the completion of the company’s share capital reconstruction, the total issued and fully paid-up shares of LASACO Assurance Plc has now reduced from 7,334,343,421 to 1,833,585,855 ordinary shares of 50 kobo each,” the notice.
Meanwhile, Business Post reports that when trading activities were halted for today, the equity price of LASACO Assurance reduced by 9.52 per cent to N1.52 per unit.
