LINKAGE Assurance Plc has secured approval from the Securities and Exchange Commission (SEC) to raise about N16.3 billion through a rights issue, as the insurer moves to strengthen its capital base and comply with new regulatory requirements in the industry.
The company disclosed in a notice to the Nigerian Exchange Limited that it plans to issue 12.32 billion ordinary shares of 50 kobo each at N1.32 per share to existing shareholders.
The offer will be made on the basis of two new ordinary shares for every three ordinary shares currently held by shareholders whose names appear on the company’s register as of January 22, 2026.
At the offer price of N1.32 per share, the transaction is expected to raise roughly N16.26 billion, which the company said would be used to meet evolving capital requirements and support expansion into strategic areas of the insurance business.
According to the company, the rights issue will open on March 11, 2026, and close on April 23, 2026. During this period, the rights allotted to shareholders will be tradable on the floor of the Nigerian Exchange, allowing investors who do not wish to take up their rights the option of selling them to other market participants.
READ ALSO: How bank chiefs crashed Nigeria’s Assurance Bank
Rights issues are commonly used by listed companies to raise fresh equity capital while giving existing shareholders the first opportunity to maintain their ownership stakes. Investors can either subscribe to the new shares, trade their rights, or allow the offer to lapse.
The company said the rights circular detailing the offer will be distributed to shareholders by the registrars to the transaction, Apel Capital Registrars Limited. The document will also be available on the registrar’s website for investors seeking additional information about the offer terms.
Shareholders can participate in the offer through a dedicated online portal created for the transaction, while physical participation forms will also be made available for investors who prefer manual submission.
Completed participation forms, together with payment or evidence of payment for the shares being subscribed to, must be submitted to any of the issuing houses or receiving agents listed in the rights circular before the closing date of April 23, 2026.
Linkage Assurance said the capital raise forms part of its broader strategy to reinforce its financial position and expand its footprint in the Nigerian insurance market.
The proceeds will partly be used to meet the minimum capital thresholds introduced under the Nigeria Insurance Industry Reform Act 2025, which has raised capital requirements for insurers as regulators push for stronger balance sheets and improved capacity in the sector.
READ ALSO: LASACO Assurance slips into loss as costs surge, but shareholders’ funds remain strong
Industry reforms have been aimed at strengthening underwriting capacity, encouraging consolidation, and enabling insurance companies to take on larger risks in sectors such as oil and gas, infrastructure, and corporate insurance.
For Linkage Assurance, the additional capital is also expected to support expansion into key business segments and enhance its ability to compete in an industry that is gradually undergoing structural change.
The company advised shareholders to consult their stockbrokers or financial advisers for guidance on participating in the offer.
