Recapitalization : AIICO seeks approval for 4.3bn ordinary shares of 50k

In line with its recapitalization plans, AIICO Insurance Plc has submitted  an application to the Nigerian Stock Exchange, seeking approval for some 4.3 billion ordinary shares of N0.50 each which it plans to list on the Nigerian bourse.

NSE’s Head of Listing Regulation, Godstime Iwenekhai disclosed this in a statement, noting that AIICO Insurance application for the rights issue was submitted by the insurance firm’s stockbroker – Magnartis Finance and Investment Limited.

It was further disclosed that the shares would be purchased at N0.80, on the basis of five new ordinary shares for every thirteen shares already held by the company’s
shareholders.

Recall that AIICO’s shareholders had, in March this year, voted in favour of a plan to raise additional capital through rights issue.

Meanwhile the insurance company was closer to meeting the recapitalisation requirement that was set forth by the National Insurance Commission, NAICOM.

Recently, two strategic investors completed private placements in the company, thereby bring it’s paid up share capital to N11.3 billion, up from N6.1 billion.

The rights issue is, therefore, expected to raise the outstanding capital in order to meet the recapitalisation requirement.