AIICO Insurance Plc says it will invest the proceeds of its on-going right issue on its property, plant, equipment and technology.
While 61.2 per cent of the proceeds are planned to be invested in property, plant and equipment to be completed in Q4 2024, 38.8 per cent will be invested in technology to be completed Q2 2023.
This was disclosed by the Chief Executive Officer, Benjamin Fajemirokun, during a virtual Facts Behind the meeting on Friday.
According to him, the issue, which is between September 2 and October 7, 2020, worth N3.5bn, will be offered on the basis of five new ordinary shares for every 13 ordinary shares held at the close of business, which was stipulated by the company.
On the rationale for the right issue, Fajemirokun remarked that the National Insurance Commission, which increased the regulatory capital requirement for the insurance industry, also increased the composite players to the tune of N18bn by 2021.
He said, “If successfully implemented, the right issue will increase the capital base of the firm from N11.6bn to N15.1bn.”
He expressed intent in capitalising some of the firm’s retained earnings.
Fajemirokun added that the offering of the right issue would ensure networking and infrastructural upgrade, while empowering the firm to underwrite big ticket transactions, especially in oil and gas industry.
