The Board of Directors of National Insurance Corporation Limited is pleased to announce the listing of 819,661,942 new ordinary shares on the Uganda Securities Exchange. The issued and fully paid up capital of the company has increased by Ushs 4,098,309,710 to Ushs 7,078,898,590 comprising 1,415,779,718 shares of par value Ushs 5.00 each.
This bonus transaction implements the shareholder resolution from the 13th Annual General Meeting on 26 June 2014 to allot Bonus shares in lieu of dividend payment to be credited as fully paid shares to shareholders registered in the books of the Company as at 20th June, 2014 in the ratio of 11 (Eleven) new shares for every 8 (Eight) shares held.
According to NIC Managing Director Mr. Folayan Bayo:
“The listing of the Bonus shares is a fulfillment of the Board’s long term commitment to increase shareholder value. Investors benefit from bonus issues through the future growth of the company and increased liquidity in the market.”
Robert Baldwin, the CEO of Crested Stocks and Securities, the Co-Lead Transaction Advisor (with Standard Investment Bank Ltd of Kenya) and Lead Sponsoring Stockbroker for the NIC Bonus Issue 2014 said,
“We have seen trades on the NIC counter at Ushs 20 which means the company’s market capitalization increased from UShs 15 Billion to Ushs 28 Billion today as a result of the Bonus issue.
Amish Gupta the Regional Director of Investment Banking at Standard Investment Bank Ltd said:
“We thank the efforts by CMA in approving the Bonus in record time (25 days) and the efficient logistics at the USE that enabled every eligible shareholder to receive their Bonus shares on Listing Day.”
