The Securities and Exchange Commission (SEC) has given Mutual Benefits Assurance Plc the go ahead to raise about N2 billion from its shareholders.
The insurer is planning to raise fresh capital from its shareholders through rights issue.
Business Post gathered that Mutual Benefits Assurance hopes to use proceeds from the exercise to fund its five-year strategy plan.
In this plan is the recapitalisation of the company. The firm is also planning to expand its operations during the period.
Mutual Benefits Assurance also said it expects to improve its IT facilities to support its enlarged operations.
It was learned that acceptance list for the rights issue would open on Monday, August 6, 2018 and close on Friday, September 14, 2018.
The new shares would be sold to existing shareholders of the firm by way of rights issue of 4,000,000,000 ordinary shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary share.
Recall that shareholders of Mutual Benefits Assurance Plc had approved the proposal of the board to raise the additional equity at an Annual General Meeting (AGM) held in Ibadan, Oyo State.
The rights issue being offered are tradable on the floor of the Nigerian Stock Exchange (NSE) for the duration of the issue.
Mutual Benefits Assurance Plc 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.