An insurance company WAPIC Insurance Plc has submitted an application to raise about N5.932 billion from existing shareholders through a right issue.
The fresh capital was expected to enable WAPIC Insurance to comply with the new capital requirements stipulated by the National Insurance Commission (NAICOM).
In a report, to market operators recently, the Nigerian Stock Exchange (NSE) said WAPIC Insurance applied to make a right issue of 15,613,194,623 ordinary shares of 50 kobo each at 38 kobo per share on the basis of seven new ordinary shares for every six ordinary shares held.
The shareholders of WAPIC Insurance Plc last June had approved that the authorised capital base be increased to N15 billion in the light of ongoing recapitalisation exercise in insurance industry.
According to the shareholders, the new capital base would ensure that the company continues to exist and waxing stronger after the recapitalisation exercise.
Chairman of WAPIC Insurance Plc, Mr. Aigboje Aig-Imoukhuede, had said the increase in the share capital was in the best interest of the shareholders as a whole, applauding them for voting in favour of the resolution to increase the capital base of the insurance company to N15 billion from the current N8.5 billion.
“That pursuant to resolution of the shareholders of Wapic Insurance Plc passed at the 58th annual general meeting(AGM) of the company on May 24, 2017 where the directors of the company were authorised to raise, whether by way of rights issue, public offering, placing, book building process or other methods or combination of methods, additional funds or capital of up to N10 billion or its equivalent in any foreign currency, by way of issuance of ordinary shares, preference shares, convertible or non-convertible loans, stock, medium term notes, bonds or other securities, in such tranches, series, or proportions, at such coupon or interest rates, within such maturity periods, and on such other terms and conditions, including the provision of security repayment, as the directors may deem fit or determine, that the authorised share capital of the company be increased from N8.5 billion to N15 billion by the creation of additional 13 billion ordinary shares of 50 kobo each to rank pari passu in all respects with the existing ordinary shares in the capital of the company.”
WAPIC Insurance Plc recently reported an impressive performance for the six months ended June 30, 2019, posting a jump of 392 per cent in profit after tax (PAT). Its PAT soared from N61.911 million in 2018 to N305.022 million in 2019.