The Nigerian Exchange (NGX) has lifted suspension placed on trading in the shares of NEM Insurance Plc after the insurance company concluded its share reconstruction exercise and listed the redenominated shares.
In a formal closure of the completion of the share reconstruction exercise, NGX delisted NEM Insurance’s entire issued share capital of 10.03 billion ordinary shares of 50 Kobo each at N2.42 per share. It subsequently listed the post-reconstruction paid up capital of 5.016 billion ordinary shares of N1 each at N4.84 per share.
“With the completion of the company’s share capital reconstruction, the total issued and fully paid up shares of NEM Insurance Plc has now reduced from 10,032,955,535 ordinary shares of 50 Kobo each to 5,016,477,767 ordinary shares of N1.00 each while the market capitalisation remained at N24,279,752,394.70,” NGX stated in a circular announcing the delisting and listing.
According to the NGX, the suspension placed on trading in the company’s shares was lifted when the market resumed from the Yuletide holiday on Wednesday, December 29, 2021 “following the completion of NEM Insurance’s share capital reconstruction”.
Market analysts said the redenomination might not be unconnected with future recapitalisation of the insurance company.
Advanced Finance and Investment Group (AFIG) Funds had in 2019 acquired 29.29 per cent largest equity stake in NEM Insurance Plc. AFIG Funds, an African private equity fund manager, had acquired the shares from existing shareholders of the insurance company.
Group Managing Director, NEM Insurance Plc, Mr Tope Smart, said the AFIG Funds investment was a product of several years of constructive engagement and strategic internal decision to partner with a long-term institutional partner.
He said the partnership with AFIG Funds will accelerate the realisation of the insurance company’s growth ambitions within Nigeria and across the continent.
“We are confident this will be a fruitful and mutually rewarding partnership,” Smart said.
Thenation