As part of its strategic growth plans, Mutual Benefits Assurance Plc has secured approval of the Securities and Exchange Commission (SEC) to raise N2billion through right issue towards its five years plan.
To this end, Mutual Benefits Assurance will be selling shares to existing shareholders by way of Rights Issue of 4,000,000,000 ordinary shares of 50 kobo each at 50kobo per share on the basis of one new ordinary shares.
Shareholders of the company had approved the Board of Directors’ proposal to raise additional equity at the company’s Annual General Meeting (AGM) held in Ibadan on June 27, 2018.
Acceptance List for the Rights Issue opened on Monday, 6, August 2018 and will close Friday 14, September 2018 The Rights being offered are tradable on the floor of The Nigerian Stock Exchange for the duration of the Issue.
The insurance company, a general business and life insurer, has an authorised share capital of N10billion with a paid up capital of N4billion.
The company provides insurance coverage across several sectors including aviation, oil and gas, marine cargo and hull business and other non-life insurance underwriting, including motor, fire and special perils, goods-in-transit, engineering insurance, retail and micro insurance, amongst others.
Speaking at the completion board meeting held on Thursday 28th day of June, the chairman of the company Dr. Akin Ogunbiyi said that the proceeds of the offer will be used to fund the Company’s recapitalization and growth plan, provision of additional working capital and financing the expansion of IT facilities to support the Company’s enlarged operations.
On plans for 2018, he said “We will consolidate on the modest achievements recorded in 2017 by commencing our IT transformation blueprint in 2018.”