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Wapic Insurance’s N3.51bn rights issue excites shareholders

By on June 14, 2013

Shareholders of Wapic Insurance Plc have expressed satisfaction over the N3.51 billion rights issue being embarked on by the company, calling all the existing shareholders to take advantage of the offer to increase their holding.

They observed that the profile and public perception of the underwriter has since improved following its take by Access Bank Plc.

Speaking on behalf of members of Renaissance Shareholders Association of Nigeria, the president, Ambassador Olufemi Timothy, said “It is a good development. My advice to shareholders is to endeavour to take up their rights and even buy more.

“You know Access Bank took over the company as a result of its take over of Intercontinental Bank, which was the parent bank. All insurance business of Access Bank will be handled by the company and it will leverage on the good will of Access Bank to boost its business and create value for investors. So, for me, it is a good buy and it is a promising company.”

Wapic is offering 6.65 billion ordinary shares of 50kobo each at 55kobo per share to its existing shareholders in the ration of eight new shares for every 10 previously held.

The offer opened on Monday, 10th June, 2013, and is billed to close on Friday 5th July 2013.

Speaking through Taukeme Koroye, a non-executive director of the company,  Wapic’s Chairman, Aigboje Aig-Imoukhuede, explained that the rights issue was a first step towards raising additional capital for Wapic’s long term infrastructure and expansion objectives, adding that the required endorsements from shareholders to guarantee the success of the offer has been received

He added that requisite approvals have been received from the Securities and Exchange Commission, SEC, and the Nigeria Stock Exchange, NSE, while explaining that shares being offered would rank pari passu in all respects with the existing shares of the company.

The Managing Director of Wapic Insurance Plc, Mr. Segun Balogun, also disclosed that plans are in top gear to ensure complete uptake of the issue. ”Our shareholders are excited at the prospect of a company with a significantly robust capital base and the underwriting privileges it would confer on the company,” He added.

Balogun further stated that Wapic is gradually being repositioned for growth in all aspects and lines of business, adding that the company has strengthened its capacity by restructuring its business model.

It would be recalled that shareholders had on June 4, 2012, during the company’s 53rd Annual General Meeting, authorised plans by the Wapic’s board of directors to raise N5billion to boost the company’s operations. The additional funds, which shall be raised will be used amongst other things to expand operations, improve infrastructure and IT capabilities and also to inject additional capital into the company’s subsidiaries.