BusinessDay... the voice of business: Oasis Insurance seeks fresh funds from capital market

Oasis Insurance seeks fresh funds from capital market
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MODESTUS ANAESORONYE on 27 March, 2008 12:00:00
 
The company, which had earlier sought the permission of the shareholders to
increase its authorised share capital to N5 billion, would be coming out with
both public and rights issue in next few months.
Shareholders at the company’s annual general meeting, which took place in
Lagos in the course of special business, passed the resolution that rights issue
of 1,250,876,697 ordinary shares of 50 kobo each be made to existing members in
the proportion of one ordinary shares for four ordinary shares held in the
company.
The meeting also agreed that shareholders waive their pre-emptive rights under
the company’s Article of Association and authorise the directors to offer for
public subscription 500,000,000 ordinary shares of 50 kobo each of the company,
at such time and price as may be decided by the directors subject to the
approval of the regulatory authority.
Besides that, in the event of over–subscription, the directors shall allot
shares for the amount of such excess subscription up the limit permitted by the
appropriate authorities.
Samuel Adegbite, chairman of the company, who spoke at the meeting, said that
the opportunity to grow the company to enviable height stares on the faces of
the board and management and this hinges on being adequately capitalised to
underwrite the abounding risks and taking investment opportunities as they come.
“To engender this envisaged rapid growth, we have to step above competition
and drive competition and so we will continue to grow the company in a manner
that will interest the shareholders.”
Adegbite assured that the company will continue to ensure transparency in its
operations, while the issue of corporate governance will be taken very
seriously.
Meanwhile, in the financial year ended December 31, 2007, the non-life
specialist underwriting firm posted a gross premium income of N 277.15 million
as against N292.80 million in 2006.
Aided by a fairly good investment income, the company’s profit after tax rose
to N184 million as against N132 million in the previous year while the profit
after appreciated from N113.55 million in 2006 to N138.16 million at the end of
2007.
The company is paying 3 kobo dividend as against 2 kobo the previous year,
which N80 million.
The balance sheet size also grew, with total asset and shareholders fund
standing at N3.734 billion and N3.465 billion as against the previous levels of
N1.051 billion and N735 million in 2006  and 2007 respectively.