Royal Exchange Plc, a conglomerate specializing in life assurance, health insurance, and credit financing, fell short of achieving full subscription for its rights issue, concluding at 75.83 percent.
The Nigerian Exchange Limited’s weekly report disclosed this development, noting the completion of Royal Exchange’s rights issue and its subsequent listing on the market.
The report stated, “An additional 3,121,328,866 ordinary shares of 50 Kobo each at N0.50 per share of Royal Exchange Plc (Royal Exchange or the Company) were listed on the Daily Official List of NGX.
“The issuance of these additional shares resulted from Royal Exchange’s Rights Issue of 4,116,296,059 ordinary shares of 50 Kobo each at N0.50 per share (with a subscription rate of 75.83 percent). Following the listing of these 3,121,328,866 ordinary shares, Royal Exchange’s total issued and fully paid-up shares have risen from 5,145,370,074 to 8,266,698,940 ordinary shares of 50 kobo each.”
The complete rights issue comprised 4,116,296,059 ordinary shares of N0.50 each at N0.50 per share, based on a ratio of four ordinary shares for every existing five ordinary shares held as of the close of business on March 6, 2023.
According to Royal Exchange’s unaudited 2023 report, the company experienced a 253 percent increase in earned income, soaring to N882.32 million from N249.61 million in the previous year. This growth was attributed to increases in net interest income and the share of profit/loss on investment in associates, which amounted to N591.55 million.
With improved earnings, the firm reported a profit of N46.09 million, a significant turnaround from a loss of N150.47 million in 2022, prompting a restructuring focused on asset management.
