Brazil-based reinsurer IRB Brasil Resseguros has reportedly secured nearly BRL1.2bn ($228.9m) through a share offering.

The development follows the firm’s decision to improve its financial structure following warnings regarding its capital sufficiency.  

The reinsurer priced its offering at BRL1 per share, which represents a discount of 28.5% over the closing share price of BRL1.40 on 1 September 2022, reported Reuters.  

The company increased its initial offering of 597 million shares by 101% to raise the needed amount.

The latest offering was handled by investment banking units of Banco Bradesco SA, Itau Unibanco Holding SA and Banco Santander Brasil SA.

The firm reportedly planned to raise over $300m as its solvency ratio dipped considerably.

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As per Refinitiv data, IRB shares slipped 65% this year.

At the end of this year’s second quarter, the company reported a decrease of BRL613.8m in adjusted shareholders’ equity with regard to minimum required capital.

In 2020, Rio de Janeiro-based asset manager Squadra Investimentos pointed to accounting irregularities at IRB.

This led to a management overhaul and the beginning of the company’s downward trend.

In April this year, a former employer of the company faced charges over a fake story stating “significant investment” by Warren Buffett’s Berkshire Hathaway Inc in IRB.

 Recently, IRB raised BRL85m from the sale of its Rio de Janeiro headquarters.

Additionally, the company closed an out-of-court settlement to receive BRL100m, ending a lawsuit with the owners of Casashopping in Rio.