LASACO Assurance Plc has secured shareholders’ approval to raise fresh capital through a combination of a Rights Issue and Private Placement.
The move will see the insurer more than triple its minimum share capital to N36.08 billion from N11.08 billion.
The resolutions were approved at the company’s Extraordinary General Meeting (EGM) held virtually on Tuesday, December 9, 2025.
If this is achieved, it will represent one of the most significant capital-raising decisions in LASACO’s recent history and underscoring its intent to strengthen its financial base.
At the meeting, shareholders approved an increase in the company’s minimum share capital from N11,083,585,855 to N36,083,585,855, representing an increase of about N25 billion.
The proposed new shares to be issued under the capital raise will rank pari passu with existing ordinary shares, ensuring no dilution of shareholder rights beyond proportional ownership.
The company also approved amendments to its Memorandum and Articles of Association to reflect the new capital structure.
Under the approved resolutions, LASACO’s board is authorized to raise the additional capital through two channels:
The board has also been empowered to determine the final terms, structure and timing of both offers, subject to approvals from relevant regulatory authorities, including the National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC).
In a further demonstration of shareholder confidence, the EGM granted the directors broad authority to appoint professional advisers, finalize documentation, and execute all agreements required to complete the transactions. The Company Secretary was also authorized to take all necessary steps at the Corporate Affairs Commission to give legal effect to the resolutions.
The capital raise aligns with the broader insurance sector recapitalization exercise where operators are strengthening capital buffers to improve resilience, expand product offerings and compete more effectively across its multiple insurance lines, including general and special risks.
Stakeholders said it is a strategic step to reinforce LASACO’s balance sheet, enhance underwriting capacity and support long-term growth initiatives.
With shareholder approval now secured, market attention will shift to the size, pricing and timing of the Rights Issue and Private Placement, which are expected to shape the company’s growth trajectory in the coming years.
With current Market Capitalization of N26.6 billion and outstanding shares of 11.1 billion, the stock closed at N2.40 per share on the Nigerian Stock Exchange (NGX) on Monday, December 15 after recording a 4% drop from its previous closing price of N2.50.
The stock began the year with a share price of N3.09 but has since lost 22.3% off that price valuation, ranking it 141st on the NGX in terms of year-to-date performance. LASACO has lost 9% of the stock’s value from November 17th to date.
Lasaco share price hit the year’s high of N5.00 per share on August 13 before a sharp descent to N2.08, the year’s lowest recorded price, on November 11.
Lasaco share price hit the year’s high of N5.00 per share on August 13 before a sharp descent to N2.08, the year’s lowest recorded price, on November 11.