Terms of the Rights Issue
The Board of Directors of National Insurance Corporation Limited is pleased to announce the key terms of the rights issue:
According to NIC Chairman Mr Remi Olowude: “The size of the rights issue is Ushs 8.4 billion and the rights issue price is Ushs 26/- per new share. It opens on 22 November 2013 and closes on 13 December 2013”.
NIC Managing Director Mr. Folayan Bayo further commented: “The rights issue ratio is 4 new shares for 5 existing shares and the register closure date is 15 November 2013.”
Robert Baldwin, the CEO of Crested Stocks and Securities, the Co-Lead Transaction Advisor (with Standard Investment Bank Ltd of Kenya) and Lead Sponsoring Stockbroker for the proposed NIC Rights Issue 2013 said, “The additional New Shares will participate in future dividends to be declared and paid from the year ending 31 December 2013.”
National Insurance Corporation Limited (NIC) is a provider of insurance and risk management services in Uganda. NIC is 60% owned by Industrial and General Insurance Company Limited (IGI) of Nigeria and 40% by the public.
The funds from the Rights Issue will be used to expand the business and in the process increase its turnover and market share. In the same vein, NIC want to be prepared to be able to take advantage of the emerging opportunities in the oil and energy sector. Of course the injected capital will also allow NIC to increase its retention capacity and thereby underwrite bigger risks. NIC as at now has the largest branch network among insurance companies. NIC’s plan is to enlarge the branch network even further. NIC will at the same time be building up its investment portfolio and embarking on improvement and redevelopment of its real estate holdings. NIC is looking at upgrading its information technology systems across the branch network to improve efficiency and service delivery. Definitely all these are geared towards increasing value for NIC shareholders.