Linkage Assurance Unveils ₦16.26bn Rights Issue After SEC Approval
Linkage Assurance Plc has confirmed that it has received formal approval from the Securities and Exchange Commission (SEC) to proceed with a rights issue aimed at raising approximately ₦16.26 billion.
The move marks a significant milestone in the company’s strategy to strengthen its capital base and align with new regulatory capital requirements for the Nigerian insurance sector.
In a filing to the Nigerian Exchange Limited (NGX), the insurer said the rights issue has been structured to offer 12.32 billion ordinary shares of 50 kobo each at ₦1.32 per share.
The offer will be made available to existing shareholders on the basis of two new shares for every three ordinary shares held as of the qualification date, January 22, 2026.
The rights subscription period is scheduled to open on March 11, 2026, and close on April 23, 2026. During this period, shareholders can subscribe for their entitlement either online through the registrar’s portal or by completing the participation form included in the rights circular.
Purpose of the Capital Raise
Linkage Assurance’s decision to launch the rights issue comes as the company prepares to meet the enhanced minimum capital threshold introduced under the Nigerian Insurance Industry Reform Act, 2025.
The legislation, signed into law in 2025, significantly raised capital requirements across the sector pushing non-life insurers’ minimum capital from ₦3 billion to ₦15 billion to improve financial resilience and protect policyholders.
Management has stated that proceeds from the rights issue will primarily be deployed to:
- Ensure compliance with the new statutory capital regime, and
- Support strategic growth initiatives across key business segments.
The rights circular, which includes the participation form and full details of the offer, will be dispatched to shareholders by the company’s registrar, Ape Capital Registrars Limited, and made available online.
Opportunity for Shareholders
For existing shareholders, the rights issue represents an opportunity to increase their stake in Linkage Assurance ahead of expected expansion.
Interested investors are advised to complete their participation forms and submit payment or proof of payment by the closing date to listed issuing houses or receiving agents.
Before the rights issue, the company had 18.47 billion ordinary shares listed on the NGX. Upon conclusion and listing of the new shares, the total issued share capital will expand to about 30.79 billion ordinary shares, subject to full subscription.
Market Context and Outlook
The rights issue unfolds against a broader industry push toward recapitalisation, as many Nigerian insurers seek fresh capital to meet statutory thresholds under the new regulatory framework. Investors and market watchers have highlighted that such capital raises are expected to strengthen balance sheets, enhance competitive positioning, and boost investor confidence in the sector.
Following the announcement of the rights issue, Linkage Assurance’s stock closed flat on the NGX, reflecting a cautious short-term market response. However, the company’s shares have delivered double-digit returns year-to-date, with trading volumes indicating robust investor interest.
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