By Dipo Olowookere
The Securities and Exchange Commission (SEC) has given the board of Sovereign Trust Insurance (STI) permission to raise N1.42 billion from rights issue.
The insurance firm intends to source N1.42 from investors of the company through the sale of 2,841,116,504 stocks at 50 Kobo each. The equities would be issued to shareholders on the basis of one new ordinary share for every four ordinary shares held as of July 22, 2022.
The underwriting company had earlier informed the investing public of its intention to carry out the rights issue, which is one of the means to raise funds from the capital market.
However, it needed the authorisation of the SEC, which is the highest regulatory agency in the Nigerian capital market.
STI, in a notice to the Nigerian Exchange (NGX) Limited, said it had obtained the approval of SEC to go ahead with the exercise, disclosing further that it should commence next month.
“Sovereign Trust Insurance is pleased to notify its esteemed shareholders, stakeholders, the Nigerian Exchange Limited, and the general public that the company has obtained approval from the Securities Exchange Commission to conduct the signing ceremony with regards to the proposed rights issue of the 2,841,116,504 ordinary shares of 50 Kobo each at 50 Kobo per share, on the basis of one new ordinary share for every four ordinary shares held. The qualification date for the rights issue is July 22, 2022.
“Subject to the approval of the executed offer document by the SEC, the application list is expected to be on July 6, 2023, or any other date approved by the commission and shall open for a maximum period of 28 days.
“Rights circular will be distributed to shareholders while application form would also be made available on the website of the company’s registrars for ease of access.
“Esteemed shareholders are advised to contact their stockbrokers and other financial advisers for more details of the offer,” the disclosure said.
Business Post reports that this would be the second major capital raising by the insurance coy in four years, as it sourced N2.09 billion from its shareholders in 2019 after selling 4.17 billion ordinary shares at 50 Kobo per unit.
Adedapo Adesanya