Dipo Olowookere
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) has granted the request made by Prestige Assurance Plc to list its rights issue of 13,465,377,640 ordinary shares on the exchange’s trading platform.
A regulatory document obtained by Business Post confirmed that the application filed by the company, through its stockbroker, Imperial Asset Managers Limited, concerning the listing of the rights issue, was approved by the exchange on February 6, 2020.
Prestige Assurance is selling 13,465,377,640 ordinary shares of 50 kobo each at 50 kobo per share, amounting to N6.73 billion, to its shareholders on the basis of five new ordinary shares for every two ordinary shares held as at the close of business on Friday, January 31, 2020.
But to make these new shares tradable on the NSE platform like the old stocks of the company on the NSE, the underwriter filed an application to the exchange to admit these equities on its platform.
According to the NSE, the application submitted by the company was “for approval and listing of Prestige Assurance Plc’s rights issue of 13,465,377,640 ordinary shares of 50 kobo each at 50 kobo per share on the basis of five new ordinary shares for every two ordinary shares held as at the close of business on Friday, January 31, 2020.”
Prestige Assurance Plc is one of the companies in the insurance sector seeking fresh funds to shore up its minimum operating capital as required by the National Insurance Commission (NAICOM).
According to the sector’s regulatory agency, operators in the country have till December 31, 2020 to increase their lowest capital base.
The board of Prestige Assurance is optimistic that funds raised from the exercise will enable the company scale through the new hurdle and operate better in the insurance industry, which is still struggling in Nigeria because of attitude of Nigerians to the sector.
Prestige Assurance Plc is one of Nigeria’s leading general insurance companies with over 65 years of undisputable insurance services, and a commitment to create long-term value for its clients and stakeholders through strong business fundamentals, consistent with our mission guided by our vision and directed by our company’s core values.
According to its profile on its website, as at December 31, 2018, the shareholders’ fund was in excess of N8.1 billion.
The firm said it has established a reputation for excellent delivery of insurance products and services, especially in special risks, such as fire & special peril, oil & energy, aviation, engineering, and industrial risk management and is strategically positioned to provide efficient and effective solutions to clients’ risk management issues, using the modern information technology, skilful and professional workforce with the objective of making them feel its positive impact in every sphere of their lives.
