AIICO Insurance announces new bonus issue of 1 share for every 5 ordinary shares

AIICO Insurance Plc, one of the leading insurance companies in Nigeria, has announced the declaration of additional 1 bonus share for every 5 ordinary shares held by existing shareholders of the Company, as at November 30, 2020.

This is contained in a notice signed by the company’s Secretary, Donald Kanu, and sent to the Nigerian Stock Exchange market today.

What you should know

These shares will be issued from the share premium account and are being issued to enable the company meet up with the new minimum capital requirement, as directed by the National Insurance Commission (NAICOM). Other key highlights of the notice include:

• Closure of Register: Tuesday, 1st- Monday, 7th December, 2020.
• Qualification date: Monday 30, November 2020.
• Date of General Meeting: December 8, 2020.
• Registrar: United Securities Limited.

In a similar vein, shareholders who are yet to complete the e-dividend registration are advised to download the registrar’s E-Dividend Mandate Activation Form, complete and submit to the registrars of their respective banks.

Shareholders with dividend warrants and share certificates that have remained unclaimed, or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar.

What this means

The recent action by the firm is a way of encouraging retail participation and increasing the equity base, all in a bid to meet the new capital requirements threshold. The primary purpose of this corporate action is to capitalize reserves and surplus which will increase the paid-up share capital of the company at face value, with no changes in net worth.