Shareholders of International Energy Insurance Plc (IEI) have approved the conversion of a N2bn shareholder deposit into equity and authorised the company to raise up to N17.5bn in additional capital, following resolutions passed at its Extraordinary General Meeting (EGM) held virtually.
The approvals mark a significant step in IEI’s recapitalisation and balance sheet strengthening efforts, as the insurance firm positions itself to meet regulatory capital requirements, expand underwriting capacity and pursue growth opportunities within Nigeria’s evolving insurance market.
At the meeting, shareholders sanctioned the conversion of the N2 billion deposit provided by Norrenberger Advisory Partners Limited (NAPL) into equity through the creation of 1.25 billion ordinary shares of 50 kobo each, priced at N1.60 per share.
The newly issued shares will rank pari passu in all respects with the company’s existing ordinary shares.
In addition, shareholders authorised the board of directors to raise fresh capital of up to N17.5bn, or such other amount as may be determined by the board, through a range of options including private placements, rights issues, public offers, strategic investor participation, or a combination of these instruments.
The capital raising may be executed in tranches and on terms, pricing and timing to be determined by the board, subject to obtaining all relevant regulatory approvals.
To accommodate the proposed capital injection, shareholders also approved an increase in the company’s share capital to the extent required for the issuance of new shares arising from the capital raise.
The new shares, when issued, will rank pari passu with existing ordinary shares and will be duly registered with the Securities and Exmodify Commission (SEC), the Corporate Affairs Commission (CAC), Nigerian Exmodify Limited (NGX) and other relevant regulatory authorities.
The meeting further resolved that the company’s Memorandum and Articles of Association be amconcludeed to reflect the new share capital structure and any consequential modifys in line with the Companies and Allied Matters Act (CAMA) 2020.
Shareholders also granted broad authorisation to the board to take all necessary and incidental steps to implement the resolutions, including executing and filing regulatory documents, engaging advisers and professionals, and complying with directives issued by regulatory authorities.
All actions previously taken by the board and management in connection with the approved resolutions were formally ratified.
Market observers note that the approved equity conversion and capital raising mandate underscore IEI’s strategic intent to reinforce its capital base, enhance financial resilience and support long-term business expansion amid tightening regulatory oversight in Nigeria’s insurance sector.
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