By Tony Obiechina, Abuja
Universal Insurance Plc has initiated plans to raise fresh capital through a proposed rights issue valued at approximately N3.2bn, as part of efforts to reinforce its financial position and support future growth.
In a notice to Trading Licence Holders, the Nigerian Exchange Limited (NGX) disclosed that the company, through its stockbroker, APT Securities and Funds Limited, has submitted an application for the approval and listing of the rights issue.
The proposed offer involves the issuance of 2,666,666,667 ordinary shares of 50 kobo each at a price of N1.20 per share. The rights issue is structured on the basis of one new ordinary share for every six existing shares held by shareholders.
According to the disclosure, only shareholders on the register of members as of the close of business on March 30, 2026, will be eligible to participate in the offer, which is designed to give existing investors the opportunity to maintain their ownership stakes while contributing additional capital to the company.
If fully subscribed, the capital raise is expected to provide Universal Insurance Plc with additional financial resources to enhance its underwriting capacity, strengthen its balance sheet, and support strategic initiatives aimed at improving operational efficiency and market competitiveness.
Market analysts note that rights issues remain a preferred route for companies seeking to raise equity capital while offering existing shareholders priority access, particularly in Nigeria’s evolving insurance sector where firms continue to position for regulatory compliance and growth.
The application is currently subject to the approval of the NGX and other relevant regulatory authorities, after which the new shares will be listed on the Exchange.
