By Modupe Gbadeyanka
The rights issue of Mutual Benefits Assurance Plc is set to open on Monday, August 6, 2018, Business Post is reporting.
During the exercise, the company plans to raise about N2 billion to be used to fund its five-year strategy plan, part of which is its recapitalisation plan as well as expansion of its operations.
The rights issue is expected to close on Friday, September 14, 2018 with the company’s 4,000,000,000 ordinary shares of 50 Kobo each to be offered at 50 Kobo per share on the basis of one new ordinary share for every two ordinary shares held as at November 1, 2017.
Business Post reports that at the close of trading on Monday, July 30, 2018, the share price of Mutual Benefits Assurance was 33 kobo per share, gaining 3 kobo today.
Mutual Benefits Assurance Plc provides insurance coverage across several sectors including aviation, oil and gas, marine cargo and hull business and other non-life insurance underwriting, including motor, fire and special perils, goods-in-transit, engineering insurance, retail and micro insurance, amongst others.
The company’s shares have recorded a one-year return of -29.74 percent and there are strong indications that if the rights issue is successful, it could rise to 50 kobo per share.
Recall that shareholders of Mutual Benefits Assurance Plc had approved the proposal of the board to raise the additional equity at an Annual General Meeting (AGM) held in Ibadan, Oyo State.
The rights issue being offered are tradable on the floor of the Nigerian Stock Exchange (NSE) for the duration of the issue.
Adedapo Adesanya