WorldStage– Guinea Insurance Plc, one of Nigeria’s oldest insurance companies on March 16 announced plans to raise N5.8 billion through a rights issue of 5.29 billion ordinary shares of 50 kobo each at N1.10, about 68 percent below its initial target in the drive to meet the Nigerian Insurance Commission (NAICOM)’s recapitalization requirements.
The company’s shareholders had approved N19 billion capital raise and 38 billion rights issue at an extraordinary general in meeting in Lagos last December.
Following the announcement on March 16, the insurer’s share price moved up 9.4 percent, from N1.28 closing price last week, to to N1.40 the day the company announced the plan, and fell back to N1.30 the day after.
With a capital base of N5.24 billion, Guinea Insurance targets the N15 billion regulatory threshold that the NAICOM requires every general insurer to have as a capital base by July.
Guinea Insurance declared no dividend following the release of its 2025 audited financial statement that revealed a 69.5 percent dip in its 2025 earnings per share compared to N11.9 in 2024.
In the announcement, the company expressed optimism about the fresh capital raise that offers two shares on every three shareholders have.
According board chairman, Temitope Borishade, the offering represents a major step in the company’s scaling-up vision, which includes innovation and value delivery to shareholders.
“This capital raise represents an important step in repositioning the company to meet these realities while expanding our capacity to deliver innovative solutions across key sectors,” he said.
Anchoria Advisory Services, the issuing house, said the insurer has always focused on growth.
It urged shareholders and investors to take advantage of the sustainable value the offer presents.
