Regency Alliance Insurance Plc has initiated a N7 billion private placement to boost its capital base, expand underwriting capacity and position to compete effectively in a post recapitalisation market.
The capital raise, which follows the successful completion of the company’s N3.04 billion rights issue, underscores the increasing drive by insurers to strengthen their balance sheets ahead of the recapitalisation deadline.
Operators seek to retain bigger-ticket risks locally, improve claims-paying ability and support the industry’s long-term growth.
Regency Alliance unveiled the private placement at a ceremony in Lagos, offering 7.37 billion ordinary shares of 50 kobo each at 95 kobo per share, with successful subscribers required to make full payment upon acceptance.
According to the offer timetable, the placing list will open today and close tomorrow, reflecting an accelerated book-building process targeted at institutional and strategic investors
The transaction is being coordinated by Investment One Financial Services Limited as Lead Issuing House, while Radix Capital Partners Limited is acting as the joint issuing house, and Greenwich Merchant Bank Limited is serving as the financial adviser.
Regency Alliance said proceeds from the private placement would be deployed to strengthen shareholders’ funds, improve underwriting capacity, enhance operational resilience and support the company’s growth strategy across key segments.
