Century Insurance to Raise Rs. 448 Million Through Rights Issue

Century Insurance Company Limited, listed on the Pakistan Stock Exchange (PSX: CENI), has approved a rights issue of approximately Rs. 448 million to bolster its financial foundation and operational liquidity, in addition to fulfilling increased capital requirements set by regulatory authorities. In a notice from the company, the board authorized the issuance of 44.814 million ordinary shares at the rate of Rs.

10 per share, which will generate an aggregate sum of Rs. 448.145 million. The additional shares will be made available to current shareholders in proportion to their own holdings, with each shareholder having the right to receive approximately 81 new shares for every 100 shares they currently own. The proceeds from this rights issue will primarily be utilized to bolster the company's paid-up capital and reserves, enhance its working capital position, and strengthen its overall financial stability.

Furthermore, the extra capital is anticipated to augment the company's underwriting capability and facilitate its business expansion. Century Insurance maintains that the reinforced capital base will aid the company in adhering to the heightened paid-up capital standards mandated by the Securities and Exchange Commission of Pakistan, thereby supporting its prospects for future growth and financial solvency.

The additional funds will also contribute to fortifying the firm's financial standing, optimizing risk retention, bolstering reinsurance partnerships, and fostering the exploration of novel business prospects. Subscribers who decline to purchase their allotted shares will experience a dilution of their current shareholdings.