Niger Insurance Plc has set a base price of 15 kobo for its planned capital raising of N15 billion in anticipation of competitive pricing being orchestrated by price depreciation at the secondary market and competing offers.
Niger Insurance’s share price closed weekend at the Nigerian Stock Exchange (NSE) at 20 kobo per share, 60 per cent below its nominal value of 50 kobo.
The company has received shareholders’ approval to provide as much as a discount of 70 per cent to its nominal value in consideration for the N15 billion capital raising.
Shareholders authorised the board of the company to issue shares of the company “either at premium or a discount” provided that in the event of a discount, it shall not be more than 70 per cent discount to the nominal value.,
Shareholders had approved and authorised the board to take all necessary steps to raise additional capital of up to N15 billion by way of rights issue, private placement or not negotiate merger and acquisition or any other form of business combinations.
Shareholders also mandated the board of the company to restructure the company’s share capital by either of share consolidation, division, cancellation or redenomination of the shares of the company.
The National Insurance Commission (NAICOM) had in May 2019 released new capital requirements for insurance businesses with a 13-month compliance period for operators to shore up their minimum capital base to the required level.
The minimum paid-up share capital of a life insurance company was increased from N2 billion to N8 billion, non-life insurance from N3 billion to N10 billion, composite insurance from N5 billion to N18 billion while re-insurance companies were directed to raise their capital base from N10 billion to N20 billion. Insurance companies are required to comply fully with the new minimum capital base by June 30, 2020.
Meanwhile, Niger Insurance at the weekend announced the appointment of Mr Edwin Igbiti as its substantive managing director. The announcement followed approval of the appointment by NAICOM. Igbiti was the immediate past managing director of AIICO Insurance Plc, another quoted insurance company.