Guinea Insurance Plc, a leading player in the Nigerian insurance industry, has been slapped with a hefty fine of N453.6 million by the Nigerian Exchange (NGX) for post-listing violations. The sanctions come as a result of the company’s failure to utilize the Issuers Portal to file sensitive result from results from a violation of NGX’s rules and regulations.
The X-Compliance Report, released by the Nigerian Exchange Limited, brought these violations to light. According to the report, Guinea Insurance Plc had contravened Rules 18.2(c) and 18.2(d) of the Issuers’ Portal Rules, which require listed companies to provide timely information through NGX to maintain an orderly market.
In the report, Schedule five of the X-Compliance Report emphasized the importance of timely information disclosure for maintaining market integrity. It stated that every listed company must provide NGX with information to perform its role in the market effectively. The rules, outlined in the NGX’s Rulebook and circulars, make it necessary for companies to obtain prior written approval from NGX RegCo before publishing information that could impact shareholders’ interests.
Guinea Insurance Plc’s infractions, as detailed in Schedule 5, led to the imposition of the N453.6 million fine. The Nigerian Exchange is determined to uphold high disclosure standards, as set out in Appendix 111 of the Listing Rules, and ensure that financial information is promptly provided to maintain an orderly market.
In a recent development, Guinea Insurance Plc had obtained regulatory approval to issue 1.8 billion units of ordinary shares at 50 kobo per share in a private placement. This approval was granted by industry regulators, including the National Insurance Commission, the Securities and Exchange Commission, and the Nigerian Exchange Group. The company’s capital-raising effort was met with unanimous approval from these authorities.
Speaking on this important development, Ademola Abidogun, the Chief Executive Officer of Guinea Insurance Plc, highlighted the significance of the private placement initiative. He stressed that this move aligns with the company’s proactive strategy to secure future growth, increase market share, and maximize returns for investors and partners.
Abidogun expressed his commitment to harnessing emerging opportunities and enhancing value for all stakeholders. He remarked, “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.”
The fine imposed by NGX serves as a reminder of the importance of adherence to regulatory guidelines and transparency in the Nigerian financial market. It underlines the need for listed companies to promptly disclose information and obtain necessary approvals to protect investors’ interests and maintain the integrity of the market.