Wapic Insurance Plc has extended the offer period for its rights issue of 15,613,194,623 ordinary shares of 50 kobo each at N0.38 per share on the basis of seven new share ordinary shares for every six ordinary shares held.
The offer ought to have closed on December 31, 2019. However, the Nigerian Stock Exchange (NSE) said in a notification yesterday that the Securities and Exchange Commission (SEC) had approved a further extension of the rights issue to Friday January 10, 2020.
Wapic Insurance Plc hopes to raise the sum of N5.9 billion from the right issue so as to achieve its plan of increasing its capital base to meet the new capital requirements stipulated by 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.
The shareholders of WAPIC Insurance Plc had last June 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
Over the last half century, Wapic has developed strong expertise in risk management and underwriting, assisting corporate entities and individuals with various classes of cover across a wide segment of the Nigerian demographics.
The company’s business lines are split into large corporates, financial institutions, public sector, high net worth individuals (HNIs) and retail sales/distribution for underwriting, investment and claims management.