Linkage Assurance PLC has officially launched a ₦16.26 billion Rights Issue, offering 12.32 billion ordinary shares to existing shareholders at ₦1.32 per share.
This capital raise is a defensive and offensive masterstroke designed to meet the rising regulatory demands of the insurance sector while positioning the firm to break into the “Top-5” league of Nigerian general insurers within the next three years.
Trading of these rights on the Nigerian Exchange (NGX) commenced on March 11, 2026, and will run through April 23, 2026, allowing shareholders to either exercise their rights or trade them for immediate liquidity.
The Company has projected the profit for the years ending 31 December 2025, 2026, 2027, 2028 and 2029 respectively and is of the opinion that subject to unforeseen circumstances and based on assumptions stated below, the profits before tax for the years ending 31 December 2025, 2026, 2027, 2028 and 2029 will be in the order of ₦3,951,000,000, ₦5,477,000,000, ₦6,785,000,000, ₦8,544,000,000, and ₦10,356,000,000 respectively.
Use of Proceeds: ₦10 Billion War Chest for Expansion
The net proceeds of ₦15.83 billion (after issue costs) have been meticulously allocated to ensure both regulatory compliance and aggressive market penetration.
| Allocation Category | Amount (₦) | Strategic Intent |
| Business Expansion | ₦10.00 Billion | Retail growth, digital platforms, and bancassurance. |
| Admissible Assets | ₦4.28 Billion | Strengthening the balance sheet per NAICOM rules. |
| Statutory Deposit | ₦1.25 Billion | Mandatory deposit with the CBN for solvency. |
| Working Capital | ₦0.30 Billion | Funding day-to-day operations and tech upgrades. |
Source: Rights Circular
Financial Performance & Future Profit Trajectory
The Rights Issue is backed by a solid 2025 performance, with the company reporting a Profit After Tax (PAT) of ₦3.11 billion in the first nine months of 2025 on insurance revenues of ₦19.29 billion.
The company’s 5-year profit forecast suggests a compound growth story, assuming a stable macroeconomic environment and the successful deployment of the new capital:
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FY 2025 (Projected PBT): ₦3.95 Billion
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FY 2026 (Projected PBT): ₦5.48 Billion
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FY 2029 (Projected PBT): ₦10.36 Billion
Ownership Structure: Post-Issue Outlook
If the rights are fully taken up, Linkage’s paid-up share capital will double to ₦15.4 billion (30.8 billion shares). The Bayelsa State Ministry of Finance Incorporated will remain the majority shareholder with a 53.43% stake, followed by Apel Asset Limited (5.91%).
Risk Assessment: The Legal Buffer
While the company is currently defending seven civil cases with total claims of approximately ₦1.16 billion and $224,493, the directors maintain a “No Material Impact” stance.
These cases are described as standard industry disputes (claims and labor issues) and are significantly covered by the company’s improved liquidity and ₦15.8 billion net proceeds.
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