SUNU Assurances Nigeria Plc at the weekend completed its N3.01 billion capital raising with the listing of the resultant shares on the Nigerian Stock Exchange (NSE).
A total of 3.01 billion ordinary shares of 50 kobo each were listed at the weekend on the main board of the NSE at N1 per share.
SUNU Assurances had undertaken a private placement of 3.01 billion ordinary shares of 50 kobo each at N1 per share to SUNU Participations Holdings SA and SUNU Assurances Vie Cote D’ivoire SA.
With this listing, the total issued and fully paid up shares of SUNU Assurances has increased from 2.80 billion to 5.81 billion ordinary shares of 50 kobo each.
Prior to the new share issuance, SUNU Assurances had undertaken a massive share capital reconstruction, which reduced the company’s issued share capital from 14 billion ordinary shares of 50 kobo each to 2.8 billion ordinary shares of 50 kobo each.
The share capital reconstruction saw the cancellation of 11.2 billion ordinary shares of 50 kobo each, 80 per cent of the company’s issued share capital.
The cancellation of 11.2 billion ordinary shares of 50 kobo each out of its issued 14 billion ordinary shares of 50 kobo each was part of a recapitalisation plan to increase the capital base of the company.
The share capital reconstruction resulted in the cancellation of four existing ordinary shares out of every five ordinary shares held by shareholders as at the close of business last October 16, 2020.
Shareholders of Sunu Assurances had at an extra-ordinary general meeting last March approved the share capital reconstruction.
The company had stated that the share capital reduction was “to allow for the issuance of new ordinary shares by way of a rights issue and private placement, to comply with the recently revised share capital requirement by the National Insurance Commission (NAICOM) for insurance companies”.
The company explained that the share capital reconstruction was adopted as the more efficient approach to creating room for new equity capital issuances.
SUNU Assurance Group had in 2016 acquired 60 per cent equity of the former Equity Assurance Plc and renamed the company SUNU Assurances Nigeria Plc. SUNU Assurance has operations in not less than 12 Franco-phone African countries and the acquisition of Equity Assurance was a major entry strategy into the Anglo-phone countries.