IRB Brasil RE disclosed today the procedure for issuing common shares for capital increase reached BRL2.08 billion. The subscription encompassed 300,083,857 common shares, a volume corresponding to around 99% of the minimum amount set, and to 90.4% of the maximum quantity. The first offering round for preemptive right ended on this Wednesday, 12.
“It is an exceptional result”, celebrates IRB’s CEO, Antonio Cassio dos Santos. “It is a clear sign of the understanding by the market on the purpose of this management, which is working under a strict governance and transparency project”, says he.
Around one hundred thousand shareholders exercised the preemptive right to purchase shares. Around 70% of the raised up value were subscribed by institutional shareholders, while the other 30%, by individual shareholders. “It shows the interest comes from a broken base and that our brand is still strong after the challenging period IRB faced”, pointed out Santos.
On July 08, IRB Brasil RE disclosed its Board of Directors had approved the company’s capital increase through the issuance of common shares. The announced value for the issuance was minimum BRL2.1 billion – which the reinsurer practically already reached in this first round – and maximum BRL2.3 billion. With the offer of the so-called standby – whose rules for interest in IRB shall be announced soon to the market -, the reinsurer is likely to reach the maximum value. “We are going to meet our goal of getting the total estimate”, ensures the CEO.
The result assessed on this Wednesday, according to IRB’s relevant information, “reinforces the company’s solvency levels and provides an improvement to the standards of regulatory classification of Technical Provision “coverage”, as well as to the liquidity additional margin, then strengthening IRB Brasil RE’s business strategy sustainability.”
“As we said before, this solution assures the company’s future in a balanced, long-term way, and this first result shows we made the right choice, now proved by the market”, concluded Antonio Cassio.
