Guinea Insurance Plc Files for N5.30 Billion Rights Issue with Nigerian Exchange
Guinea Insurance Plc has formally applied to the Nigerian Exchange (NGX) for approval to raise N5.30 billion through a rights issue. This strategic move is aimed at strengthening the company’s capital base and ensuring compliance with new regulatory minimum capital requirements. The application, identified in a market bulletin with reference NGXREG/IRD/MB8/26/01/21, was submitted through the firm’s stockbrokers, Forte Financial Limited and Mega Equities Limited, and is now pending regulatory clearance.
The proposed offer involves the issuance of 5,295,200,000 ordinary shares of 50 kobo each at a price of N1.10 per share. The rights issue is structured on the basis of two new shares for every three existing shares held by shareholders as of the qualification date of January 21, 2026. Upon receiving the necessary approvals, the company’s transfer agents will dispatch rights circulars and communicate the detailed offer timetable to eligible shareholders.
This capital-raising initiative unfolds against a backdrop of significant regulatory reform within Nigeria’s insurance sector, driven by the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The new legislation mandates that all insurers and reinsurers meet updated Minimum Capital Requirements (MCR) by July 30, 2026. The industry-wide recapitalization effort, which involves rising costs for firms seeking to scale, is being closely monitored by regulators who require detailed recapitalization plans and quarterly progress reports. The broader financial landscape is also witnessing increased scrutiny, as seen in cases where the EFCC probes suspected financial irregularities, highlighting an ongoing conflict between regulatory enforcement and corporate growth ambitions.
Guinea Insurance’s stock performance has seen volatility, closing at N1.30 per share on January 22, 2026. The company began the year with a share price of N1.33, representing a 2.26% year-to-date decline. With 7.94 billion shares outstanding, the company currently holds a market capitalization of approximately N10.3 billion, ranking as the 110th most valuable stock on the NGX. As organizations globally pursue ambitious goals, akin to a moonshot 2025 focused on AI and digital transformation, and as groups like Amnesty International advocates for corporate accountability, Nigerian insurers like Guinea are navigating a critical period of consolidation and regulatory alignment to secure their future in the evolving market.
