Royal Exchange Plc’s shareholders have given the board of directors permission to seek new equity capital from current shareholders in an amount up to N2.06 billion.
Shareholders passed resolutions permitting the issuing of 4.112 billion ordinary shares of 50 kobo to existing shareholders with the goal of raising N2.058 billion at an extraordinary general meeting.
Four new ordinary shares will be issued as part of the rights issue for every five existing shares held as of the qualification date.
Recent purchases include 39.25 percent of Royal Exchange General Insurance Company (REGIC) Limited, a Royal Exchange subsidiary, by an investment vehicle established by the German government.
By boosting its risk capital and sustaining its operations, the acquisition’s revenues would aid REGIC in accelerating its underwriting capacity in agriculture, thus extending its outreach to low income farmers.