NEM Insurance Completes Share Capital Reconstruction, Lifts Suspension

NEM Insurance Plc has completed the reconstruction of its share capital and lifted the suspension announced earlier in December 2021, the company disclosed in a statement released via the Nigerian Exchange Limited.

The insurance company reconstructed its shares from a nominal share value of N0.50 to N1.00 and delisted its 10,032,955,535 ordinary shares of 50 Kobo each at N2.42 per share while 5,016,477,767 ordinary shares of N1.00 each at N4.84 per share arising from the share capital reconstruction were listed on NGX’s Daily Official List on the same day.

What is Share Reconstruction?

Share reconstruction is a method used by listed companies to reduce the number of outstanding shares and increase and increase their share price proportionately without affecting the total book value of those shares.

Also, known as a reverse stock split, it reduces the number of issued shares but it does not affect the value of shares held by the company’s shareholders.

The statement reads “We refer to our market bulletin of 24 December 2021 with reference number: NGXREG/LRD/MB60/21/12/24, wherein the Market was notified that the full suspension placed on trading in the shares of NEM Insurance Plc (NEM Insurance or the Company) was extended to 29 December 2021 to enable listing of the Company’s reconstructed shares on the Nigerian Exchange Limited (NGX).

“Trading License Holders and the investing public are hereby notified that the suspension placed on trading in the Company’s shares was lifted on Wednesday, 29 December 2021 following the completion of NEM Insurance’s share capital reconstruction. Consequent to the completion of the share reconstruction exercise, NEM Insurance’s entire issued share capital of 10,032,955,535 ordinary shares of 50 Kobo each at N2.42 per share was delisted from NGX’s
Daily Official List while the 5,016,477,767 ordinary shares of N1.00 each at N4.84 per share arising from the share capital reconstruction were listed on NGX’s Daily Official List on the same day.

“With the completion of the Company’s share capital reconstruction, the total issued and fully paid up shares of NEM Insurance Plc has now reduced from 10,032,955,535 ordinary shares of 50 Kobo each to 5,016,477,767 ordinary shares of N1.00 each while the market capitalization remained at N24,279,752,394.70.

“This is for your information and records update, please.”