Lasaco Assurance Announces Major Rights Issue to Strengthen Capital Base
Lasaco Assurance Plc has unveiled a significant rights issue, offering 9,236,321,546 ordinary shares as part of its strategy to bolster its capital structure and drive future growth. This development was officially announced during a signing ceremony held at the company’s headquarters in Lagos State on Friday.
The initiative received approval from both the Nigerian Exchange Group (NGX) and the Securities and Exchange Commission (SEC), marking a key milestone for the insurer. The decision to proceed with the rights issue followed an Extraordinary General Meeting where shareholders overwhelmingly endorsed the move to raise capital through this process.
Details of the Rights Issue
According to the Managing Director of Lasaco Assurance Plc, Ademoye Shobo, the rights issue is priced at N2.00 per share, with each ordinary share valued at 50 kobo. The offer will be structured on a basis of five new shares for every six existing shares held by shareholders.
Shobo explained that the rights issue will be available to shareholders whose names are listed on the register as of the close of business on Friday, February 20, 2026. The acceptance period for the offer is scheduled to open on April 2, 2026, and will close on April 24, 2026.
The company anticipates raising approximately N18.47 billion through this initiative. This influx of capital is expected to enhance the underwriting capacity of the insurer and support its expansion plans within Nigeria’s competitive insurance market.
Flexibility for Shareholders
One of the key features of the rights issue is that the offered shares will be tradable on the floor of the Nigerian Exchange Ltd throughout the duration of the offer. This provides shareholders with the flexibility to either take up their rights or sell them in the market, depending on their investment strategies.
Financial advisers to the transaction include Meristem Capital Limited as the Lead Issuing House, alongside PAC Capital as the Joint Issuing House. Their involvement underscores the significance of the deal and the confidence they have in Lasaco Assurance’s long-term prospects.
Strategic Alignment with Industry Trends
Shobo emphasized that the capital raise aligns with broader efforts by insurance companies to meet regulatory requirements and strengthen their balance sheets. This move also positions Lasaco Assurance to better participate in large-ticket risks across various sectors of the economy.
“At Lasaco, we will continue to ensure that our capital is always robust, so that we’re able to deliver on the mandates to the general public,” he stated.
Key Takeaways
- Rights Issue: Lasaco Assurance Plc is offering 9,236,321,546 ordinary shares.
- Pricing: N2.00 per share, with each share valued at 50 kobo.
- Offer Structure: Five new shares for every six existing shares.
- Eligibility: Shareholders listed on the register as of February 20, 2026.
- Acceptance Period: April 2 to April 24, 2026.
- Funds Raised: Approximately N18.47 billion.
- Tradability: Shares will be tradable on the Nigerian Exchange Ltd.
- Advisers: Meristem Capital Limited and PAC Capital.
