Guinea Insurance to Raise ₦15bn via Rights Issue, Private Placement

Guinea Insurance Plc has secured shareholder approval to raise up to ₦15 billion in additional equity capital as part of efforts to comply with revised regulatory capital requirements and strengthen its financial base.

The approval was granted at the company’s Extraordinary General Meeting, where shareholders authorised the Board of Directors to raise the funds through a combination of a rights issue and private placement, with terms, pricing and execution timeline to be determined in line with regulatory approvals and market conditions.

As part of the resolutions, shareholders approved an increase in the company’s minimum issued share capital from ₦4 billion, comprising 8 billion ordinary shares of 50 kobo each, to ₦19 billion, made up of 38 billion ordinary shares of 50 kobo each. The Board was empowered to issue up to 5.29 billion ordinary shares through a rights issue and to allot any unsubscribed shares to other investors under a private placement arrangement.

Shareholders also approved the issuance of up to 6.32 billion ordinary shares at an offer price of ₦1.45 per share by way of private placement. The new shares will rank pari passu with existing ordinary shares, ensuring equal rights for all shareholders.

To reflect the new capital structure, amendments were approved to the company’s Memorandum and Articles of Association, updating provisions on issued share capital and formally documenting the increase through the creation of additional ordinary shares.

The capital-raising exercise follows a regulatory directive that significantly increased minimum capital requirements across the insurance industry, with operators given a defined timeline to comply. The initiative is aimed at strengthening insurers’ risk-bearing capacity, improving claims settlement and restoring confidence in the sector, as more operators move toward capital verification under the ongoing recapitalisation programme.