AIICO Insurance PLC Rights Issue now open

Stanbic IBTC Capital is acting as sole Issuing House to a N3.5 billion Rights Issue by AIICO Insurance Plc (“AIICO”), which opened on Wednesday, 02 September 2020 and is scheduled to close on Wednesday, 07 October 2020. A total of 4,357,770,954 ordinary shares are being offered to AIICO shareholders in the ratio of 5 new shares for every 13 shares held at close of business on Monday, 15 June 2020 (the “Qualification Date”). The Rights Issue is being undertaken at N0.80 per share, which represents a discount of 25.2% to the closing quoted share price of N1.07 on the Qualification Date. 

AIICO is a leading insurer in Nigeria with a track record of over five decades of successfully operating in the insurance sector. The Rights Issue is the first phase of its approach to meet the National Insurance Commission’s revised minimum paid-up capital requirements for composite insurers. The second phase is expected to involve capitalising a portion of AIICO’s retained earnings through the issuance of bonus shares to increase its paid-up capital.

The Rights Circular, which contains a Provisional Allotment Letter and the Participation Form, has been dispatched to the mailing addresses of all AIICO shareholders. The Rights Circular is also available for download at www.aiicoplc.com or below. Shareholders can also download their personalised Participation Forms from www.unitedsecuritieslimited.com.

Acceptance and/or renunciation of rights provisionally allotted must be done in accordance with the instructions set out on the Participation Form.

AIICO shareholders who are interested in accepting their rights should submit their completed Participation Forms together with a cheque or bank draft for the full amount payable to any Stanbic IBTC Bank PLC branch nationwide or any of the Receiving Agents listed in the Rights Circular not later than Wednesday, 07 October 2020. The cheque or bank draft must be made payable to Stanbic IBTC Bank PLC or the Receiving Agent and crossed “AIICO RIGHTS” with your name, address and mobile phone number written on the back of the cheque or bank draft. Shareholders who wish to make payment electronically, should contact any Stanbic IBTC Bank PLC branch nationwide or Receiving Agents listed in the Rights Circular to obtain bank transfer details.

AIICO shareholders who are not interested in accepting all or some of their rights may trade such rights through Stanbic IBTC Stockbrokers Limited by submitting their completed Participation Form and a share transfer form before the Rights Issue closes. They will be entitled to monetary considerations for the traded rights and such trades will be executed at the price at which the rights are quoted on The Nigerian Stock Exchange.

For further information on the Rights Issue, please contact us via e-mail at [email protected].