Some shareholders have expressed their support for the on-going N2 billion Rights Issue of Mutual Benefits Assurance Plc.
The shareholders across various groups said there are potentials for the company to grow as it has hugely invested for a long while in the retail space, which holds the growth pot of the insurance industry. The floor of Stock exchange They said they will take their Rights with great optimisms, given that the company has promised to sustain dividend payouts.
The company is offering to its existing shareholders four billion ordinary shares of 50 kobo each at 50kobo per share on the basis of one new ordinary shares for every one held, targeted at raising N2 billion.
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, NSE, for the duration of the issue.
The company, which is into general business and life insurer, has an authorised share capital of N10billion with a paid up capital of N4 billion. 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 on the offer, the chairman of the company Akin Ogunbiyi, said that the proceeds of the offer will be used to fund the company’s recapitalisation and growth plan, provision of additional working capital and financing the expansion of IT facilities to support the company’s enlarged operations.
“Despite the tough business environment we have been able to bounce back to profitability and delight our shareholders. Dividend of N0.02kobo per share will be paid to our esteemed shareholders who have stood by us over the years” he said.