The share capital reconstruction embarked upon by LASACO Assurance Plc has been completed and this lifted the company’s share price from 42 kobo to N1.68 kobo on The Nigerian Stock Exchange (NSE).
The Exchange’s suspension of trading on the stock, which was imposed on February 1, 2021 as a statutory requirement to hedge against price distortion during the share reconstruction has been lifted.
Share capital reconstruction is the process of reducing the listed shares of a company for better value. The process involves merging shares together at a given ratio.
In the case of LASACO Assurance, it merged four equities into one and this reduced its total issued and fully paid-up shares to 1,833,585,855 ordinary shares of 50 kobo each from 7,334,343,421 ordinary shares of 50 kobo each.
To break it down further, a shareholder of LASACO Assurance with 100 units of the company’s equities will be left with only 25 units after the exercise.
This development was confirmed by the NSE in a circular issued to dealing members Tuesday.
“We refer to our market bulletin of February 1, 2021, with reference number: NSE/RD/LRD/MB07/21/02/01, wherein the market was notified that trading in the shares of LASACO Assurance Plc was placed on full suspension effective Monday, February 1, 2021, as a result of the company’s proposed share capital reconstruction.
“Also refer to the subsequent extension of the suspension communicated to the market through our market bulletin of February 16, 2021, with reference number: NSE/RD/LRD/MB10/21/02/16.
“Dealing members are hereby notified that the full suspension placed on trading in the company’s shares was lifted on Monday, February 22, 2021, following the completion of the share capital reconstruction.
“Consequent to the completion of the reconstruction exercise, LASACO’s entire issued share capital of 7,334,343,421 ordinary shares of 50 kobo each at 42 kobo per share prior to the share capital reconstruction was delisted from the NSE’s daily official list, while the 1,833,585,855 ordinary shares of 50 kobo each at N1.68 per share arising from the share capital reconstruction were listed on the exchange’s daily official list on the same day.
“With the completion of the company’s share capital reconstruction, the total issued and fully paid-up shares of LASACO Assurance Plc has now reduced from 7,334,343,421 to 1,833,585,855 ordinary shares of 50 kobo each,” says the notice.
At the close of trading for today, The Kernel reports that the share price of LASACO Assurance reduced by 9.87 percent to N1.37 from the opening value of N1.52 when compared with 9.52 per cent to N1.52 per unit at the close of Monday trading.