Fortis Global Insurance Plc has announced plans for a share capital reconstruction.
In a corporate disclosure released on the Nigerian Exchange (NGX) portal on Thursday, the company noted that restructuring exercise will result in a planned reduction of the company’s total issued share capital, consolidating existing shares into a leaner, more robust equity structure.
Financial analysts note that companies typically trigger share reconstructions to clean up their financial books, eliminate accumulated historical losses, and lift their nominal share prices on the trading floor, making the equity more attractive to institutional investors.
According to the notice, the management of Fortis Global Insurance assured its stakeholders that the exercise will not diminish the proportional percentage of ownership held by any individual shareholder, instead, it is designed to position the underwriting firm for sustainable future growth and regular dividend payouts.
It further disclosed that it has already initiated formal engagements with apex regulatory bodies, including the National Insurance Commission (NAICOM), the Securities and Exchange Commission (SEC), and the NGX, to secure the mandatory approvals required to execute the capital adjustments smoothly.