Lagos — Stires market Aiico Insurance Plc yesterday opened its vaults for the public as it commenced the sale of its 2.5 billion ordinary shares. The company's ordinary shares of 50 kobo each is been offered at N2.20 even as the equity commends a market price of N3.43.

This by implication means that the investors who buy into the public offer of Aiico Insurance would have recorded a gain of N1.20 on purchase.

But the chairman of the company Chief Dele Fajemirokun who spoke at the company's completion board meeting held at the Golden Gate restaurant in Lagos last week said that the shares may after all be the exclusive preserve of the discerning investors considering that the shares are as well as having been sold ahead of the opening of the offer.

Already, 40 per cent of the 2.5 billion ordinary shares amounting to 800 million shares have been reserved as preferential allotment to Aiico Bahamas, the foreign technical partners of Aiico Insurance Plc.

With Greenwich Trust Limited as the issuing house, the Aiico public offer is to last for just 21 days. The deal is scheduled to close by December 31. The share offer is 80 per cent underwritten with Greenwich having an underwriting exposure of N3.65 billion and Spring Capital Limited N4.4 billion.

Assuring investors of a refreshing partnership, the chairman said that all the company is in a better position to surpass all its offer projections including dividend payments.

Chief Fajemirokun had earlier explained that the net proceeds of the offer amounting to N5.28 billion would be deployed in such a manner that the upgrade and expansion of the Aiico branch will attract N2.005 billion translating to 38 per cent. The highest contribution of N2.22 billion or 42 per cent will go in as working capital while the upgrade of the company's information technology will attract N1.06 billion representing 20 per cent of the offer net proceeds. The sum of N224.37 has been set aside as the cost of prosecuting the offer.

The better side of the offer however comes in the area of the returns as Aiico said that it is anticipating a 2008 gross earning of N5.85 billion. The amount is to increase to N7.17 billion by 2009 just as the 2010 earnings was put at N8.68 billion with the after tax profit hanged at N3.4 billion. If everything goes well with the company's earnings projection, the shareholders will be expecting to share the whooping sum of N1.006 as dividends in year 2010.

The Aiico group which has Mr. David Sobanjo as managing director has Aiico General Insurance and Aiico Asset Management Limited as subsidiaries.

Among those who sit on the company's board are Dr. Rilwanu Lukman, Chief Rasheed Gbadamosi, Chief Eugene Okwor who is Nigeria's first commissioner for insurance as well as Mr. Egejuru Uzoma among others.