Guinea Insurance Plc gets N453.6 million fine for disclosure violations
The Nigerian Exchange has sanctioned Guinea Insurance Plc with a fine of N453.6 million for post-listing violations.
This was contained in the X-Compliance Report of the Exchange seen by Nairametrics.
According to the report, the company failed to utilize the Issuers Portal to file sensitive information which is a violation of Rules 18.2(c) and 18.2(d): Issuers’ Portal Rules.
Disclosure violations
Schedule five of the X-Compliance Report noted:
“Every listed company is required to provide NGX with timely information to enable it efficiently to perform its function of maintaining an orderly market.
In accordance with the provisions of Appendix III: General Undertaking (Equities), Rulebook of NGX, 2015 (Issuers’ Rules) and NGX’s Circular No. NSE/LARD/LRD/CIR3/17/05/12 on Publication of Announcements or Press Releases via the Issuers’ Portal, listed companies are required to obtain prior written approval from NGX RegCo before publications that affect shareholders’ interests are made in the media or via the Issuers’ Portal.
In addition, companies are also required to disclose material information to NGX and publish the information in their Annual Reports. The companies listed in Schedule 5 below breached certain provisions of the Listings Rules and were sanctioned accordingly”.
X-Compliance Report
X-Compliance Report is an initiative of the Nigerian Exchange Limited (NGX) which is designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.
Companies listed on NGX are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.
Financial information which is periodic disclosure and ongoing material events disclosure should be released to NGX in a timely manner to enable it to efficiently perform its function of maintaining an orderly market.
Regulatory approval to issue 1.8 billion units of ordinary shares
Guinea Insurance Plc recently got regulatory approval to issue 1.8 billion units of ordinary shares at 50 kobo per share in a private placement.
This was disclosed in a statement issued by the insurance company on the capital-raising effort.
Part of the statement read,
“The company had gained the unanimous approval of the industry regulators, including the National Insurance Commission, the Securities and Exchange Commission, and the Nigerian Exchange Group, for its completion board meeting and private placement initiative. This initiative involved the issuance of 1,802,800,000 ordinary shares at 50 Kobo per share.”
The Chief Executive Officer of Guinea Insurance Plc, Ademola Abidogun, speaking on the development, spoke on the crucial significance of the private placement initiative in harnessing emerging opportunities and enhancing value for all stakeholders.
He noted that the initiative was consistent with the company’s proactive approach to securing future growth, increasing market share, and dedication to maximizing returns for investors and partners.
Abidogun said,
“Guinea Insurance Plc is fully prepared to make the most of this opportunity to further fortify our market position, enhance customer experience, and open doors to even greater possibilities.
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Full Story: https://nairametrics.com/2023/10/19/guinea-insurance-plc-gets-n453-6-million-fine-for-disclosure-violations/
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