Subscriptions for the N5.9 billion rights issue of WAPIC Insurance Plc which commenced on November 20, 2019 is expected to close on December 31, 2019.
Information from the firm disclosed that those eligible to participate in the exercise are investors with stakes in the company as at the close of business on Thursday, September 19, 2019.
WAPIC Insurance is offering to its shareholders 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 as at the qualification date.
Chapel Hill Denham Advisory Limited is lead issuing house for the transaction, while Coronation Securities Limited is the stockbroker for the exercise, with Coronation Merchant Bank Limited as the joint issuing house.
From this exercise, the company hopes to raise the sum of N5.9 billion and expect this to help achieve its plan to increase its capital base to meet the new capital requirements of the industry regulator; the National Insurance Commission (NAICOM).
According to WAPIC Insurance, the N5.9 billion will serve as investment funds which will be channeled to WAPIC Life Assurance Limited and WAPIC Insurance (Ghana) Limited.
On Friday, September 20, 2019, the Head of Listings Regulation Department at the Nigerian Stock Exchange (NSE), Mr Godstime Iwenekhai, disclosed in a circular that the insurance firm has applied to do a rights issue worth N5.933 billion against which the NSE approved the listing of the company’s rights issue.