NSE-listed general insurer, STACO Insurance Plc has disclosed plans to raise additional funds of N3 billion ($18 million) to enhance the company’s working capital, after it secured approval from shareholders during the company’s Annual General Meeting (AGM) in Lagos, Nigeria.
It was resolved at the meeting that additional capital be raised “up to a maximum of N3 billion through right issue and or public offer and or special placement upon such terms and conditions as the Directors may deem fit in the interest of the Company for the purpose of enhancing the Company’s working capital.”
The company has therefore created an additional N4 billion ($24 million) ordinary shares of 50 kobo each, equal in value of the existing ordinary shares in the company’s capital.
This will increase STACO’s authorised share from N4.5 billion ($27.1 million) to N6.5 billion ($39.2 million). The company has given shareholders a reason to invest more, with a N6.28 billion ($37.9 million) net premium recorded at the end of 2012 financial year from N5.9 billion ($35.6 million) the previous year. Profit before tax and exceptional item also rose from a loss of N462.97 million ($2.79 million) in 2011 to N310.76 million ($1.88 million) in 2012.
