By Dipo Olowookere
The board of directors of NEM Insurance Plc is seeking regulatory approval for its share restructuring plan, a notice from Nigerian Exchange (NGX) Plc has confirmed.
Ms Lilian Dako, who signed the disclosure on behalf of the head of the NGX listing regulatory department, said the underwriting company filed its claim through its stock broker, Apel Asset Limited.
NEM Insurance intends to rename the face value of its shares from 50 kobo to N1, and then convert every two shares of 50 kobo into one of N1.00 each.
At present, the total authorized shares of the company stand at 10,400,000,000 units of 50 kobo each, but this will increase to 5,200,000,000 units of N1.00 after exercise.
However, the authorized share capital will remain at 5.2 billion naira before and after the stock rebuilding, according to the statement.
“Following resolutions adopted at the Annual General Meeting (AGM) of NEM Insurance Plc on June 24, 2021, trading licensees are informed that Nigerian Exchange Limited has received a request from Apel Asset Limited for a proposal reconstruction of the shares of NEM Insurance Plc. .
“The reconstruction of the shares involves the redenomination of the nominal value of the shares of the company from 0.50 N to 1.00 N, resulting in the consolidation of 2 shares of 50 N each held in NEM Insurance Plc into one share of 1.00 N each.
The analysis of the Company’s share capital, before and after reconstitution of the shares, is presented in the table below:
Details Pre-split reconstruction Post-split reconstruction
Authorized share capital (N) 5,200,000,000 5,200,000,000
Issued share capital (N) 5,016,477,989 5,016,477,989
Nominal value per share (N) 0.50 1.00
Authorized total (units) 10,400,000,000 5,200,000,000
Total issued issues (shares) 10,032,955,535 5,016,477,989
“Further information regarding the reconstitution of the shares will be communicated in due course,” the stock exchange notice said today.
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