SEC approves extension of WAPIC Insurance N5.9 billion rights issue
Wapic Insurance is offering the rights issue to invest in Wapic Life Assurance Limited and Wapic Insurance (Ghana) Limited.
The Securities and Exchange Commission (SEC) has approved an extension of the offer period of Wapic Insurance Plc’s rights issue of 15,613,194,623 ordinary shares of 50 kobo each at 38 kobo per share. The offer of rights issue opened on November 20, 2019 and was expected to close on December 31, 2019. A rights issue provides existing shareholders of a company the opportunity to buy additional shares at a discounted price for a specified time frame.
In a statement released by the Nigerian Stock Exchange (NSE) yesterday, the offer has been extended to January 10, 2020. Wapic Insurance, a leading West African full-line insurance company, is offering the rights issue to raise N5.93 billion to meet the new regulatory capital requirements as stipulated by the National Insurance Commission (NAICOM).
Given the recapitalisation exercise, shareholders of WAPIC Insurance Plc had in June approved an increase in the authorised capital base of the insurer to N15 billion. According to the insurance company, the capital raise will enable it to invest in Wapic Life Assurance Limited and Wapic Insurance (Ghana) Limited.
Wapic Insurance is offering the rights issue on the basis of seven new ordinary shares for every six ordinary shares held by shareholders whose names appeared in the register of members of the company as at September 19, 2019.
Wapic Insurance offers a diverse range of products and services covering life, general and special risk businesses. The insurer has a five-year strategy plan for 2019-2023, aimed at guiding its aspirations to be among the top three insurance companies in Nigeria by 2023.
Chapel Hill Denham Advisory Limited has been appointed as the Lead Issuing House on the transaction. Investors interested in accepting or trading their rights are advised to contact the securities trading and investment management firm.
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