NEM Insurance Plc has extended the suspension of its share trading on the floor of the Nigerian Exchange (NGX) Limited as part of the reconstruction of the company’s shares.
In a statement on NGX, the company notified the investing public of the placement of suspension on trading in the shares of NEM Insurance to enable the company conclude its share reconstruction and redenomination of the nominal value of NEM Insurance’s issued ordinary shares from 50 kobo each to N1.00 each by the consolidation of every two shares held by each shareholder into one share.
It stated that, the suspension has been extended till December 29, 2021 to enable Nigerian Exchange Limited list the reconstructed shares.
The shareholders gave the approval for the share reconstruction at the annual general meeting (AGM) of NEM Insurance Plc on June 24, 2021.
At the AGM, the group managing director/CEO of the company, Tope Smart said: “with regard to the issue of recapitalisation, the National Insurance Commission (NAICOM) having looked at the impact of COVID-19 on the recapitalisation of insurance industry decided to break the exercise into two phases. Insurance companies were required to meet up with 50 per cent of their required capital by December 31, 2020 while full compliance was scheduled to be attained by September 30, 2021.
“We met the first phase by capitalising our share premium and part of our retained earnings to bring our Paid-Up Capital to N5.016 billion. This was achieved through the issuance of bonus shares to all existing shareholders.”
The company’s full-year forecast for the 2021 financial year expects that its pre-tax profit of N2.4 billion at the end of the third quarter would advance to N4.5 billion at full year while tax expenses would increase from N379 million to N455 million over the same period.