BY NKECHI NAECHE-ESEZOBOR—Royal Exchange Plc has unveiled plans to raise up to ₦2.7 billion in fresh equity capital as part of efforts to strengthen its capital base and advance its recapitalisation programme.
The insurer will seek shareholders’ approval for the proposed fundraising and other strategic resolutions at an Extraordinary General Meeting (EGM) scheduled to hold virtually on July 15, 2026.
According to a notice filed with the Nigerian Exchange Limited (NGX), the company is proposing a public offer of 2.08 billion ordinary shares of 50 kobo each at ₦1.30 per share, subject to obtaining the requisite regulatory approvals.
The board is seeking shareholders’ authorisation to determine the terms and conditions of the offer, appoint professional advisers, execute transaction documents, and secure all necessary regulatory clearances required to complete the exercise.
Shareholders will also be asked to ratify all actions already taken by the board in connection with the proposed capital raising programme.
To facilitate the capital raise, Royal Exchange is seeking approval to increase its share capital from ₦4.63 billion to ₦5.17 billion through the creation of an additional 1.08 billion ordinary shares of 50 kobo each.
The newly created shares will rank pari passu with the company’s existing ordinary shares. The board is also requesting authority to cancel any unallotted shares or further increase the company’s share capital where necessary to accommodate future capital-raising transactions.
In addition, shareholders will consider a proposal authorising the board to allot the new shares created under the public offer at ₦1.30 per share, or at such price as may be determined by the directors, to one or more investors on terms deemed appropriate by the board.
The company is further seeking approval to amend Clause 6 of its Memorandum of Association upon completion of the equity raise to reflect the new issued share capital. The company secretary will be empowered to file all necessary documents and returns with the Corporate Affairs Commission (CAC) to give effect to the resolutions.
The proposed resolutions underscore Royal Exchange’s commitment to enhancing its financial capacity and meeting evolving regulatory and market expectations within Nigeria’s insurance industry.
