Yemisi Izuora
Law Union & Rock Insurance Plc is anticipating to raise about N722 million in new equity funds from strategic investors in the latest round of capital raising by insurance companies.
The Insurance firm would be offering 1.031 billion ordinary shares of 50 kobo each at 70 kobo per share to strategic investors through a special placement.
The offer price of 70 kobo represents a premium of 3.0 kobo on the insurance company’s current market price of 67 kobo and a discount of 6.0 kobo from its one-year highest price of 76 kobo.
The Law Union & Rock Insurance’s private placement has been approved by the Nigerian Stock Exchange (NSE), paving the way for the company to round off pre-opening process.
Faced with demand for recapitalisation at a period of prolonged investors’ apathy for primary offers, insurance companies are increasingly turning to private placement to raise new equity funds.
Also, another insurance company, Standard Alliance Insurance Plc, recently indicated it would be offering about 16 per cent equity stake to a strategic investor to raise about N553 million.
Standard Alliance Insurance’s bid came on the heels of similar fund raising by Staco Insurance Plc. Staco successfully raised N1.6 billion new equity funds from its special placement.