February 22, 2008
Crusader Insurance (Nigeria) Plc is set to approach the capital market to raise fresh funds of N15 billion through a hybrid offering of Rights Issue and Public Offering (PO). Sources at the Head Office of the company made this disclosure to Proshare News/Investigations.
Recently the shares of the company was placed on technical suspension on the floors of the Nigerian Stock Exchange (NSE); raising the question of a proposed funds drive by the insurance company.
Proshare News/Investigations gathered that the hybrid offering will open in March, 2008, I know the hybrid offering will commence in March, but I do not know the actual dateÃƒÆ’Ã†â€™Ãƒâ€ Ã¢â‚¬â„¢ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã‚Â¡ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã†â€™ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â the source said.
Crusader Insurance would offer ordinary shares of 50 Kobo each at N5.00 per share. Though as at the time of filling in this report, there were not many details as regards the offering.
However, the source told Proshare News/Investigations that a committee has been set up and are working out modalities to make sure the hybrid offering was successful.
Financial documents made available to Proshare News/Investigations shows that Premium Income of the company increased from N583.2 million in 2002 to N1.099 billion in 2006 indicating an 88.5 percent increase.
While Profit after Tax (PAT) also rose significantly from N39.5 million in 2002 to N315 million in 2006 representing a 697 percent rise.
Profit before Tax (PBT) also grew from N43.6 million in 2002 to N348.3 million in 2007 showing a growth of 698.5 percent.
However dividend was not paid to investors in the 2006 financial year. Though without prejudice to Proshare News/Investigations analyst review of the 2006 financial figures of Crusader Insurance Plc, no in-depth analysis has been done yet to confirm some of the figures made available in the 2006 financials of the company which ended 31st December.
Our source disclosed that the 2007 reports is being prepared and would soon be ready; before the hybrid offering commences.