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In what could be described as signs of the times, Wapic Insurance Plc said it raised N4.03 billion during its rights issue represesnting a- 32 per cent shortfall from its target of N5.93 billion.
The company in 2019, offered 15.61 billion ordinary shares of 50 kobo each to its shareholders at 38 kobo per share in the hope of raising about N5.9billion at the end of the exercise. The rights issue had been pre-allotted to shareholders on the register of the insurance company as at the close of business on September 19, 2019 on the basis of seven new ordinary shares of 50 kobo each for every six ordinary shares of 50 kobo each already held.
The issue, which opened last November 20, was initially scheduled to close on December 31, but was extended to January 10, this year.
However, regulatory filings showed that shareholders picked up only 10.61 billion ordinary shares of 38 kobo out of the 15.61 billion ordinary shares of 50 kobo each offered by the company. The listing of more shares of 10.61 billion ordinary shares of 50 kobo each increased the total issued and fully paid up shares of the firm from 13.38 billion ordinary shares of 50 kobo each to 23.99 billion ordinary shares of 50 kobo each.
Wapic Insurance hopes to use the net proceeds to shore up its capital base ahead of the regulatory deadline for new minimum capital requirements set for insurance companies.
The National Insurance Commission (NAICOM) had in May last year, released new capital requirements for insurance and reinsurance businesses except Takaful insurance. 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 with the new minimum capital base by December 31.
