Applications for the N2 billion rights issue by Mutual Benefits Assurance Plc closed at the weekend, receiving agents are expected to collate and submit subscriptions to the offer within the next two weeks.
Mutual Benefits Assurance offered four billion ordinary shares of 50 kobo each to existing shareholders at 50 kobo per share. The rights issue was provisionally allotted on the basis of one new ordinary share of 50 kobo each for every two ordinary shares held as at the close of business on November 1, 2017.
The Application list for the rights issue will open on Monday, August 6, 2018 and closed on Friday, September 14.
According to the board of the insurance company, the net proceeds of the rights issue would be used to deepen the capital base of the company and enhance its ability to create more wealth for shareholders.
Mutual Benefits Assurance Plc Chairman, Dr. Akin Ogunbiyi, said the net proceeds of the rights issue would be used to finance the company’s growth plan including provision of additional working capital and expansion of information and communication technologies to support the company enlarged operations.
He said the strategic goal of the company is to become the number one insurance company in Nigeria in terms of growth and profitability.
He assured that new investments in technologies would help the company to eliminate delay in its processing and focus more on customer satisfaction.
Addressing shareholders recently, Ogunbiyi reassured shareholders of the commitment of the board and management of the company to sustainable growth, in line with its five-year strategic plan.
Mutual Benefits Assurance had in 2017 started implementation of a five-year strategic plan aimed at repositioning it for future opportunities and challenges.
The five-year plan focused on four key areas of the group’s business including deepening market penetration and customer acquisition, customer service delivery excellence, transformation of it people and culture and operational effectiveness.