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Prestige Assurance Plc has announced a revision of the terms of its proposed Rights Issue.
This was disclosed in a notification made available to dealing members of the Nigerian Stock Exchange and signed by the head of listing regulations of NSE, Mr Godstime Iwenekhai.
In the revised terms of the proposed rights issue, 13, 635,796,006 ordinary shares of 50 kobo per share are to be sold to existing shareholders at 50 kobo on the basis of 38 new ordinary shares for every 15 ordinary shares that was held as at the close of business on Friday, January 31, 2020.
This is against the initial terms of the proposed rights issue, which was 13,465,377,640 ordinary shares of 50 kobo each were to be sold to existing shareholders at 50 kobo on the basis of 5 new ordinary shares for every 2 ordinary shares that were held as at close of business on Friday, January 31, 2020.
This rights issue by Prestige Assurance is part of the measures to meet up with the recapitalisation deadline set by the insurance regulator, National Insurance Commission (NAICOM). The regulatory agency had set out a deadline of December 31, 2020, for all insurance and reinsurance operators to meet with the prescribed minimum paid-up capital requirement for the sector.
The management of Prestige Assurance Plc said it is quite upbeat that the funds to be realised would assist in positioning the insurance firm for more robust operations as well as enable it scale through the recapitalisation hurdle.
