Guinea Insurance Secures SEC Approval for N5.8 Billion Rights Issue

Guinea Insurance Plc has received approval from the Securities and Exchange Commission (SEC) to conduct a N5.8 billion Rights Issue. The announcement was made in a notice to shareholders dated March 25, 2026, signed by Chinenye Nwankwo, the company’s Company Secretary.

The rights issue is part of Guinea Insurance’s strategic plan to strengthen its capital base and support operational expansion, enhancing its underwriting capacity and ensuring sustainable growth.

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The notice outlined the offer:

“Guinea Insurance Plc (“GIP” or “the Company”) is pleased to inform its esteemed shareholders and the investing public that it has secured the approval of the Securities and Exchange Commission (SEC) for a Rights Issue of 5,295,200,000 ordinary shares of 50 kobo each at N1.10 per share, on the basis of two (2) new ordinary shares for every three (3) ordinary shares held as at the close of business on 21 January 2026.”

The rights issue opened on March 25, 2026, and will close on May 1, 2026. Shareholders are encouraged to fully or partially take up their rights, and unexercised rights can be traded on the Nigerian Exchange Limited (NGX) during the offer period, subject to regulatory approval.

Earlier in January 2026, the company had applied to the NGX for approval to raise N5.3 billion through a rights issue, aiming to bolster its capital base and meet new regulatory minimum capital requirements. Forte Financial Limited and Mega Equities Limited, appointed stockbrokers, facilitated the application. Shareholders on record as of January 21, 2026, are eligible to participate.

Guinea Insurance stated that the additional funds would support its ability to underwrite critical sectors of the Nigerian economy, drive digital transformation, and enhance operational efficiency. Detailed information on procedures for acceptance, renunciation, and payment is provided in the Rights Circular distributed to shareholders. The company also encouraged shareholders to contact stockbrokers or appointed receiving agents for guidance on participation.

The company views the rights issue as a key initiative to strengthen its financial stability, competitiveness, and adaptability amid ongoing changes in the insurance industry.