Six Nigerian firms list N37.19bn new shares; insurers lead capital raise
Six companies listed on the Nigerian Exchange added 14.44 billion new shares worth N37.19 billion through private placements, rights issues and debt-to-equity conversions, according to NGX’s weekly report for the week ended September 4. Insurance firms drove the bulk: Coronation Insurance placed 4.53 billion shares at N2.16 each (N9.79 billion), Sovereign Trust Insurance issued 2.51 billion shares via rights issue at N2.00 (N5.02 billion), SUNU Assurances offered 2.075 billion shares at N4.50 (N9.34 billion) and Regency Alliance Insurance issued 2.674 billion shares at N0.95 (N2.54 billion). Sterling Financial Holdings added 2.57 billion shares at N4.00 through a private placement (N10.29 billion) while Eunisell Interlinked converted N200 million of debt into 68.73 million shares at N2.91. The four insurers accounted for 81.7% of the shares and 71.8% of the value, reflecting the industry’s recapitalisation to meet NAICOM’s 2025 capital rules. While the new shares expand the equity base and supply for investors, the actual impact on market capitalisation will depend on how the market prices the enlarged share base after listing. Given that more shares don’t automatically raise market value, will you wait to see how the market prices these new issues before adjusting your investment stance?