Six NGX Companies Raise N37.19 Billion Through New Shares

Six companies, including Sterling Financial Holdings Plc, listed a total of 14.44 billion additional shares valued at N37.19 billion on the Nigerian Exchange (NGX) following capital-raising and restructuring transactions. This information was published in the NGX weekly report for the period ending September 4.

The transactions indicate that companies are utilizing private placements, Rights Issues, and debt-to-equity conversions to enhance their capital and support growth, with insurers contributing significantly. Four recapitalized insurance firms—Coronation Insurance, Sovereign Trust Insurance, SUNU Assurances, and Regency Alliance Insurance—accounted for 11.79 billion of the new shares, representing 81.70% of the total.

These firms also contributed N26.69 billion to the total value, which is 71.78% of the aggregate. Coronation Insurance raised N9.79 billion through a private placement, while Sovereign Trust Insurance raised N5.02 billion via a Rights Issue.

SUNU Assurances raised N9.34 billion through a Rights Issue, and Regency Alliance Insurance implemented a multi-phased recapitalization program. Sterling Financial Holdings is authorized to raise up to $400 million through various instruments for expansion.