Private Placement: Guinea Insurance Leads Top Performers on NGX
Guinea Insurance’s share price surged significantly rising by 50% in the equities market last week following the completion of its private placement In an announcement on August 10, 2023, Guinea Insurance Plc told the investing public that it had achieved a remarkable feat the company had gained the unanimous approval of the industry regulators.
The insurance company said it obtained approval from the National Insurance Commission (NAICOM), the Securities and Exchange Commission (SEC), and the Nigerian Exchange Group (NGX), for its Completion Board Meeting and Private Placement initiative.
“This initiative involved the issuance of 1,802,800,000 Ordinary Shares at 50 Kobo per Share”, the Insurer told investors in a regulatory filing submitted to the Nigerian Exchange.
It said the endorsement was seen as a reinforcement of the Company’s dedication to regulatory compliance and its clear strategic vision to emerge as a leading insurance company in Nigeria.
Its Chief Executive Officer, Mr. Ademola Abidogun, expressed his heartfelt gratitude for the tremendous support the Company had received from both stakeholders and regulators.
He underscored the crucial significance of the private placement initiative in harnessing emerging opportunities and enhancing value for all stakeholders.
Guinea Insurance CEO noted that the initiative was consistent with the Company’s proactive approach to securing future growth, increasing market share, and its dedication to maximizing returns for investors and partners.
“Guinea Insurance Plc is fully prepared to make the most of this opportunity to further fortify our market position, enhance customer experience, and open doors to even greater possibilities. Our resolute commitment to success and the results of it can be seen from the Company’s performance in Q2 of 2023.
“The Company made remarkable financial advancements in the quarter, highlighted by substantial increases in key performance metrics. Remarkable boosts were seen in Insurance Contract Revenue (36.54%), Insurance Service Result (57.00%), and Net Investment Income (44.51%).
“The transformation of Profit/(Loss) Before and After Income Tax was especially striking, showing an impressive turnaround from loss to profit by 132.2% and 125.96%, respectively.
“These positive outcomes were largely driven by effective cost-saving strategies and enhancements in operational efficiency that in turn, accentuated the Company’s impressive resurgence and its resolute drive to establish itself as the preferred insurance provider”, CEO said.
The regulatory approval demonstrates Guinea Insurance Plc’s dedication to its stakeholders and its unwavering pursuit of sustainable growth, while remaining attentive to industry trends and opportunities, management said in a statement.