By Modupe Gbadeyanka
In order to beef up its capital base to position it in better stead for large-ticket transactions, Sovereign Trust Insurance Plc has commenced the process of sourcing additional N2.1 billion from its shareholders.
The insurance company, which is expected to raise fresh capital to meet up with the new requirements of its regulator, the National Insurance Commission (NAICOM), getting the funds through rights issue of 4,170,411,648 ordinary shares of 50 kobo each at 50 kobo per unit.
A disclosure from the Nigerian Stock Exchange (NSE) said the firm is issuing the new shares on the basis of one new ordinary share for every two ordinary shares held by shareholders.
This exercise is expected to last for over a month and the company is anticipating huge participation from investors so as to achieve its aim.
“Further to our market bulletin of January 15, 2019, with reference number: NSE/RD/LRD/MB06/19/1/15, dealing members are hereby notified that Sovereign Trust Insurance Plc rights issue of 4,170,411,648 ordinary shares of N0.50 each at N0.50 per share on the basis of one new ordinary share for every two ordinary shares held as at January 15, 2019, has opened for subscription.
“Acceptance list opened on Monday, June 24, 2019 [and] acceptance list closes on Wednesday, July 31, 2019,” the notice signed by Head of Listings Regulation Department at the NSE, Mr Godstime Iwenekhai, stated.
Business Post reports that shares of Sovereign Trust Insurance Plc were traded on the floor of the NSE on Monday, July 1, 2019 at 23 kobo per unit, the same rate they were exchanged last Friday.
