Connect with us

STOCK MARKET

NEM Insurance Plc distributes 4.7 billion bonus shares worth N2.36 billion

NEM Insurance Plc has announced the distribution of bonus shares of 4.7 billion at N0.50k worth N2.36 billion.

Published

on

The Management of NEM Insurance Plc has announced the distribution of bonus shares of 4.7 billion at N0.50k worth N2.36 billion.

The disclosure is part of the resolutions passed at the Extra-Ordinary General Meeting of the firm, which was sent to the Nigerian Stock Exchange market, and seen by Themoneymetrics.

Themoneymetrics gathered that the bonus shares will be issued to existing members of the Company, subject to the filing of the increase in Authorized Share Capital of the Company at the Corporate Affairs Commission, as approved at the AGM held on 18th of June 2020.

  • According to the notice, the 4.7 billion ordinary shares of N0.50k will be distributed among members, whose names are found in the Company’s Register at the close of business on 16th of December, 2020, in the proportion of nine (9) new shares of 50 kobo each for every ten (10) existing shares of 50 kobo each, held by them.
  • The shares distributed shall rank pari pasu with the existing shares in all respect and will be treated for all purposes as capital and not as income

The breakdown on how the bonus share was arrived at, showed that the total sum of N2,359,748,543.5 (approximately N2.36 billion) was transferred from the company’s share premium account and retained earnings account to the share capital account, wherein the bonus shares (fully paid) will be distributed from. The breakdown of individual contribution shows that;

  • N2,087,197,543 was distributed from the firm’s retained earnings account
  • N272, 551,000 was distributed from the firm’s share premium account.

What you should know

  • Our source had earlier reported a 482% increase revenue projection by NEM Insurance Plc for Q1 2021.
  • Themoneymetrics gathered that the register of members and transfer books of the company will be closed from 17th-18th of December, 2020. In accordance to this, bonus shares will be distributed to shareholders whose names are on the register before the date of closure.
  • According to Investopedia, a bonus share, also known as a scrip issue or a capitalization issue is an offer of free additional shares to existing shareholders. Shareholders can sell their shares to meet their liquidity needs. In addition, Bonus shares increase a company’s share capital but not its net assets.
Advertisement
Click to comment

Leave a Reply

STOCK MARKET

MTN Nigeria, GTBank, Zenith Bank drop amid profit-taking

The market breadth closed negative as BOCGAS led 15 Gainers as against 34 Losers topped by BUACEMENT at the end of today’s session.

Published

on

Nigerian Stocks suffered its first loss in 2020. The All Share index plunged by 1.83% to close at 40,396.14 index points as against the 2.18% gain recorded yesterday. Its Year-to-Date (YTD) returns currently stands at 0.31%.

  • Tuesday’s trading session turnover at the Nigerian Stock market however ended bullish as volume surged up by 119.73% as against a 70.18% drop recorded on Monday’s trading session. TRANSCORP, ZENITHBANK, and FCMB were the most active to boost market turnover.
  • LEARNAFRCA leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
  • The market breadth closed negative as BOCGAS led 15 Gainers as against 34 Losers topped by BUACEMENT at the end of today’s session – an unchanged performance when compared with the previous outlook.

Top gainers

  1. BOCGAS up 9.72% to close at N10.5
  2. ETERNA up 6.48% to close at N5.75
  3. AFRIPRUD up 5.47% to close at N6.75
  4. VITAFOAM up 2.34% to close at N8.75
  5. SEPLAT up 1.91% to close at N410

Top losers

  1. BUACEMENT down 5.88% to close at N80
  2. ZENITHBANK down 4.28% to close at N24.6
  3. GUARANTY down 2.84% to close at N32.55
  4. MTNN down 2.77% to close at N165.2
  5. OKOMUOIL down 1.10% to close at N90

Outlook

Nigerian bourse ended the last trading session on a negative note. NSE30 stocks like MTN Nigeria, GTBank, Zenith Bank dragged the Sub-Saharan based index lower as profit-taking was notable among blue-chip stocks.

  • Themoneymetrics however envisages cautious buying, as institutional investors reduce their long positions amid growing COVID-19 caseloads in Nigeria’s key international markets, particularly Europe, which contributes to about 40% of Nigeria’s crude oil shipment.
Continue Reading

STOCK MARKET

FCMB drops 10% in early trading

At about 10.55 am the tier-2 Banking stock was trading at N3.00 printing a decline of 9.91% at the Nigerian bourse.

Published

on

Nigeria’s leading tier-2 bank, First City Monument Bank (FCMB) recorded significant losses at the first trading session of 2020.

What you must know: At about 10.55 am, the tier-2 Banking stock was trading at N3.00, printing a decline of 9.91% at the Nigerian bourse.

However, it’s critical to note FCMB is still the best performing Nigerian bank stock with yearly returns at 70%.

What this means: The plunge in share price is largely attributed to growing concerns among investors on recent reports stating the Management of First City Monument Bank Limited (FCMB) had announced it is currently investigating the allegation involving its Managing Director, Adam Nuru.

This was according to an exclusive press release made available to Nairametrics and signed by the Head of Corporate Affairs, FCMB Group, Diran Olojo.

Continue Reading

STOCK MARKET

MTN CEO Designate, Karl Toriola acquires shares worth over N41 million

Karl Toriola acquired 253,982 ordinary shares of MTN Nigeria Plc, worth over N41 million.

Published

on

The CEO designate of Nigeria’s telecommunication behemoth, Karl Toriola , has acquired 253,982 ordinary shares of MTN Nigeria Plc, worth over N41 million.

This information was made available today, 4 January 2021 in a Notification of Share Dealing by Insiders, issued and signed by the Company Secretary, Mrs Uto Ukpanah.

According to the information disclosed by Mrs. Ukpanah, the CEO designate of MTN Nigeria PLC acquired 253,982 ordinary shares of the largest telecommunication company in Africa on 31 December 2020.

The purchase of the shares was made over a spread of three deals/transactions on the floor of the Nigerian Stock Exchange, at an average price pegged at N162.96, over the course of the transactions.

At this price, the total consideration for the 253,982 shares purchased by Mr. Toriola is put at N41,388,906.72

Why this matters

Dealings by insiders of listed companies are corporate actions to be disclosed, as required by the Nigerian Stock Exchange.

This is in compliance with the exchange policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.

What this means

The purchase of the shares of MTN Nigeria Plc by Mr. Toriola shows the confidence the incoming CEO has in the fundamental strengths of the company, as well as the valuation of the company in 2021 and beyond, despite the stemming regulatory tensions spiked by the Federal Government, as the FG moves to profile all active mobile phone subscribers, which may affect the profit of the company which was pressured in 2020.

What you should know

  • It was reported that the Management of MTN Nigeria Communications Plc announced the appointment of Mr Karl Toriola as the CEO designate.
  • His appointment as the CEO will become effective 19 March 2021, providing enough time for an orderly handover by Mr Ferdinand Moolman, the current CEO.
Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Facebook

Follow us on Twitter

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 92 other subscribers

Trending