The Board of Directors of National Insurance Corporation Limited is announcing the submission of an application for approval of the NIC Bonus Issue 2014 to the Capital Markets Authority and the Uganda Securities Exchange.
According to NIC Managing Director Mr. Folayan Bayo: “The application for approval of the introduction by capitalization to the Capital Markets Authority is a significant milestone for the Bonus Issue. The company is seeking regulatory approval to implement the recent shareholder resolution to capitalize the company through the issue of 819,661,942 new ordinary shares of Ushs 5.00 each in lieu of cash dividend. The present transaction, if approved, shall increase the issued and fully paid up capital of NIC from Ushs 2,980,588,880 to Ushs 7,078,898,590, thereby strengthening the capital base of the company, improving the liquidity of NIC shares at the USE, and will ensure NIC’s continued compliance with regulatory requirements.”
Robert Baldwin, the CEO of Crested Stocks and Securities, the Co-Lead Transaction Advisor (with Standard Investment Bank Ltd of Kenya) and Sponsoring Stockbroker for the Bonus Issue 2014 said, “The trailing diluted full-year 2013 earnings per share post-rights-issue was Ushs 3.386. Using Ushs 20.00 as the traded price on 26 August 2014 the trailing price earnings ratio is 5.9. NIC shareholders on the registry as of 20 June 2014 will be eligible to receive the bonus shares and thereby increase their shareholding by 11 shares for every 8 held.”
Subject to regulatory approvals, the new shares will only be issued in electronic format and deposited into Securities Central Depository (SCD) accounts. NIC shareholders holding paper certificates are urged to visit their broker to open SCD accounts and immobilize their share certificates in order to receive the bonus shares.