Coronation Insurance Plc Set to Raise ₦9.26 Billion Through Private Placement to Strengthen Financial Position

Coronation Insurance Plc has secured shareholder approval to raise ₦9.26 billion through a private placement, a move aimed at boosting the company’s capital base, expanding its operations, and positioning it for future growth in Nigeria’s competitive insurance industry. The decision was made at the company’s Extraordinary General Meeting (EGM) held virtually on April 24, 2026, with shareholders passing a series of resolutions critical to the company’s capital-raising efforts.

Authorisation for Capital Raise of Up to ₦9.26 Billion

One of the major resolutions passed during the meeting was the authorisation for Coronation Insurance Plc to raise capital of ₦9,257,142,857.76 (Nine Billion, Two Hundred and Fifty-Seven Million, One Hundred and Forty-Two Thousand, Eight Hundred and Fifty-Seven Naira and Seventy-Six Kobo). The capital will be raised through a Private Placement, which will involve issuing ₦9 billion in new shares, with the remaining ₦257.14 million allocated to cover issuance costs.

This move is a part of Coronation Insurance’s strategy to strengthen its financial position and provide the necessary resources to capitalise on emerging opportunities within the insurance industry. The capital raised will enable the company to enhance its operational capabilities, expand its product offerings, and explore new avenues for business growth. The Private Placement will be aimed at raising funds from selected investors rather than the general public, ensuring that the process remains exclusive and controlled.

Increase in Share Capital

In line with the approval to raise capital, the shareholders also authorised an increase in the company’s share capital. The new share capital will accommodate the additional shares to be issued under the Private Placement. These new shares will rank pari passu with the existing ordinary shares, meaning they will have the same rights and privileges as the current shares of the company. This ensures that the expansion in the share capital is fair and beneficial to all existing shareholders.

Share Allotment Authorisation

The shareholders further granted authorisation for the Board of Directors to allot the new shares created through the Private Placement at ₦2.16 per share. The price of ₦2.16 is significantly lower than the current market price of ₦2.66 per share, which may offer new investors an attractive entry point. The shares will be offered in multiple tranches and will be allocated to one or more investors, with the specific terms and conditions to be determined by the Board.

This flexible and structured approach to the share allotment allows the company to efficiently raise the capital needed while keeping the process under the control of the Board. The Board will carefully determine the number of shares to be allotted, the terms of the offer, and the selection of investors to ensure that the capital raise aligns with the company’s long-term goals.

Finalisation of Private Placement Terms and Investor Selection

The Board of Directors has been granted full authority to finalise the terms and timeline for the Private Placement. This includes deciding on the specific investors to approach for the capital raise. The Board will also be responsible for negotiating and finalising the list of potential investors, ensuring that the capital raise is executed effectively and strategically, with investors aligned with the company’s vision.

This resolution gives the Board the flexibility to respond to market conditions and investor interest, ensuring that the capital raise is both timely and successful.

Appointment of Professional Parties for Capital Raise

In order to facilitate the Private Placement, shareholders authorised the Board of Directors to appoint all necessary professional parties. These will include legal advisors, financial consultants, auditors, and other experts who will assist in ensuring that the capital raise complies with all regulatory, legal, and financial requirements. Engaging these professionals will help the company navigate the complex regulatory environment surrounding private placements and ensure the successful execution of the capital raise.

Regulatory Approvals and Compliance

The Board of Directors was also given the authority to take any further actions necessary to obtain regulatory approvals for the Private Placement. This includes securing approvals from critical regulatory bodies such as the National Insurance Commission (NAICOM), the Securities and Exchange Commission (SEC), and the Nigerian Exchange Limited (NGX).

The company emphasised its commitment to adhering to all regulatory requirements to ensure the capital raise complies with the relevant laws and standards. The process will also require the company to submit detailed reports and documents to these regulatory bodies to obtain their official approvals before proceeding with the capital raise.

Share Capital Changes at the Corporate Affairs Commission

Once the capital raise is completed, the Company Secretary will be authorised to reflect the changes in the company’s share capital structure at the Corporate Affairs Commission (CAC). This includes updating the Memorandum and Articles of Association to formally recognise the increase in share capital resulting from the Private Placement.

Ratification of Pre-Placement Actions

Lastly, shareholders ratified all the preliminary steps already taken by the Board of Directors in preparation for the capital raise. This includes any initial actions taken leading up to the EGM and the authorisation for the capital raise process to move forward.