Staco Goes On Suspension for Impending Share Offer
SmartProInvesting.com, March 13, 2008
Fast-growing Nigerian Insurer, Staco Insurance Plc, had its stock placed on technical suspension, Wednesday, by the Nigerian Stock Exchange. This followed the receipt of its application for a share offer, believed to be a combination of rights issue and an offer for subscription. The share price was suspended at N6.82. Indications are that the offer will get to the market by April at the possible offer prices of N5 and N5.50 respectively.
Engaged in general and special risks insurance business, Staco has, in a relatively short span, grown to the point of laying claim to a leading position in the Nigerian insurance market. With a leadership that is assuredly proving its mettle, the company looks set to take its business a major notch up. It has recently declared its focus on raising its capital base to some N20 billion, far above the current regulatory requirement. The impending offer will obviously be aiming to attain that target. Its shareholders funds is presently in excess of N3.5 billion.
Already, Staco is taking key steps to position itself for a more active play in the insurance market. It's currently pushing to expand its branch presence and has slated 12 new ones for this year, from 11 presently in operation. It recently signed a $10million bond with a UK firm, Daewoo Securities (Europe) Limited aimed at strengthening its capacity for bigger ticket insurance businesses. Staco also recently floated a new investment company (SIC Property & Investments Ltd) which will be targeting business opportunities in the lucrative property market.
The Staco offer would seem another good opportunity for Nigerian investors to stake in a company that offers a promising future. The company had earlier raised money in a private placement of 2.2billion ordinary shares of 50 kobo each at 75 kobo per share.
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