AXA Mansard Insurance Plc has announced an increase in its authorized share capital from N5.25 billion to N18 billion, indicating a massive rise of 242.9%.
The recent development is part of the resolutions of the Extra-Ordinary General Meeting of AXA Mansard Insurance Plc, sent to the Nigerian Stock Exchange Market.
On how the additional N12.75 million authorized share capital will be created, the firm proposed the creation of 25,500,000,000 (Twenty Five Billion, Five Hundred Million) ordinary shares of N0.50K each.
Key highlights of the resolutions
- The newly created 25.5 billion ordinary shares of N0.50k were resolved to be issued and allotted as fully paid bonus shares, to registered company’s shareholders as at December 14, 2020 (the Relevant Date); in the proportion of Seventeen (17) new ordinary shares for every Seven (7) ordinary shares held as at the Relevant Date (“the Bonus shares”).
- The capitalization of funds standing to the credit of any of the company’s reserve accounts or to the credit of the profit and loss account or otherwise available for distribution, up to the sum of N12.75 billion. The capitalization is for the purpose of issuing Bonus Shares as fully paid shares to the shareholder
- To round to the nearest whole share or zero in situations where the issuance of the Bonus Shares results in a fraction of a share being held.
- To alter the nominal value of the issued ordinary shares of the Company from 50 kobo to N2.00K each through the consolidation of every four (4) shares held by each shareholder into one (1) share.
- A decision to grant consolidated shares equal rights and restrictions as the existing shares of the Company was reached.
- Finally, the consolidation exercise was fixed for December 31, 2020
What you should know
- It was earlier reported that the Nigerian House of Representatives directed NAICOM to suspend the recapitalization of insurance firms.
- According to Investopedia, Authorized share capital, also known as Authorized stock, is the maximum number of stock units (shares) that a company is legally allowed to issue or offer based on its corporate charter. An increase to the Authorized share capital is only possible through shareholder’s approval, after satisfying regulatory requirement.
- Therefore in lieu of this, AXA Mansard Insurance Plc in accordance with Section 102 of CAMA, and Article 40 of the company’s Articles of Association, reported the necessary changes.
- Our source gathered that AXA Mansard Insurance Plc market capitalization is about N23.54 billion, and last closed with share price of N2.28.
Nigerian stocks slightly bullish as ETERNA and UPL soar
The stock exchange market made a bullish trend at the end of today’s trading session posting gains that increased the index by +5.47 points. The All-Share Index increased by +0.01% closing at 37,952.65 from 37,947.18 index points.
• The stock exchange market value currently stands at N19.78 trillion. Its Year-to-Date (YTD) returns currently stand at -5.76%.
• The market breadth closed positive as ETERNA led 22 Gainers, and 10 Losers topped by FTNCOCOA at the end of today’s session.
• The stock market has declined -2,318.07 basepoints since the start of the year.
NGX ASI top gainers
1. ETERNA up +10.00% to close at N7.13
2. UPL up +9.93% to close at N1.55
3. CUTIX up +9.92to close at N3.99
4. REGALINS up +8.89% to close at N0.49
5. LEARNAFRCA up +8.76% to close at N1.49
NGX ASI top losers
1. FTNCOCOA down -7.32% to close at N0.38
2. SOVRENINS down -6.06% to close at N0.31
3. ETI down -3.77% to close at N5.10
4. STERLNBANK down -3.21% to close at N1.51
5. UBN down -2.68% to close at N5.45
• Market sentiments trend towards the bulls as 22 gainers outweighed 10 losers.
US stock market dips amid rise in Moderna, BioNTech
As inflation fears overshadowed solid retail sales statistics and better-than-expected earnings reports, US markets dipped on Friday, sending the Dow Jones Industrial Average into the red for the week.
After Treasury Secretary, Janet Yellen issued an inflation warning, the Dow Jones Industrial Average fell. Meanwhile, Virgin Galactic (SPCE) fell once again, putting it on course for a huge weekly loss. AMC Entertainment (AMC), a meme stock, is also down this week.
Moderna (MRNA) soared on news of its inclusion in the S&P 500, while BioNTech (BNTX) remained on the rise.
Inflation fears kept the market back all week, but the S&P 500 and the Dow did briefly reach fresh all-time highs. The consumer price index rose 5.4 % in June from a year ago, the quickest rate in nearly 13 years, according to data released on Tuesday.
Quick market analysis
Among the main indices, the Nasdaq fared the best, although it still declined approximately 0.6 %. Cintas (CTAS) was the best performer, gaining more than 4%, while Trip.com (TCOM) was the worst performer, losing just over 4%.
The S&P 500 lost 0.6%, closely matching the Nasdaq. Teleflex (TFX) was a standout performer, rising more than 3%. However, the stock dropped over 10% on Thursday. Norwegian Cruise Line (NCLH) was the worst performer in the S&P 500, falling nearly 5%.
Sectors in the S&P 500 were mixed, with utilities and real estate leading the way. The worst were energy and materials. The Russell 2000 index was down roughly 0.6%, indicating that small caps were sliding again.
The Dow Jones Industrial Average fell by about 8%, Amgen (AMGN) and Procter & Gamble (PG) were the best-performing stocks, with Amgen up 0.7% and Procter & Gamble up 1.1%.
Nigeria’s stock market soars amid plunge in CWG and IKEJAHOTEL
Nigeria’s stock exchange market ended today’s trading session bullish, posting a profit at the end of the trading session. The All-Share Index increased by +0.18% to close at 38,482.52.
• The Nigerian Stock Exchange market value currently stands at N20.3Trillion. Its Year-to-Date (YTD) returns currently stands at -4.44%.
• The market breadth closed positive today as UPL led 15 Gainers, and 20 Losers were topped by CWG at the end of the session showing a consolidation as movement is not certain.
1. UPL up +9.38% to close at N1.40
2. REGALINS up +8.16% to close at N0.53
3. VERITASKAP up +5.00% to close at N0.21
4. CHIPLC up +4.17% to close at N0.75
5. ROYALEX up +3.90% to close at N0.80
1. CWG down -9.66% to close at N1.87
2. IKEJAHOTEL down -9.09% to close at N1.00
3. NASCON down -8.78% to close at N13.50
4. JOHNHOLT down -8.62% to close at N0.53
5. LINKASSURE down -8.33% to close at N0.55
• Market sentiments trend towards the bulls as 15 gainers outweighed 20 losers.
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