Dipo Olowookere
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) has approved the request of Prestige Assurance Plc to list its N6.8 billion rights issue on its trading platform.
This decision was reached after the management of the exchange reviewed the application filed by the insurer through its stockbroker, Imperial Asset Managers Limited.
According to a document from the NSE, the approval was granted to the insurance company for the raising of fresh capital on Tuesday, April 7, 2020.
This is the second time the NSE was approving the rights issue of Prestige Assurance.
Business Post recalled that on Thursday, February 6, 2020, the exchange had earlier approved the rights issue of the insurance company. However, the company revised the exercise and sought another approval for the reviewed rights issue.
In the previous one, Prestige Assurance had offered to sell 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 in the new rights issue, Prestige Assurance is planning to offer for sale to its shareholders a total of 13,635,796,006 ordinary shares of 50 kobo each at 50 kobo per share on the basis of 38 new ordinary shares for 15 ordinary shares held as at the close of business on January 31, 2020.
According to the board of Prestige Assurance, 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.
