Sovereign Trust Insurance Rights Issue Closes Wednesday
By Dipo Olowookere
The rights issue announced by the board of Sovereign Trust Insurance Plc will close on Wednesday, August 21, 2019, the company has said.
The exercise was earlier scheduled to wrap up on Wednesday, July 31, 2019, but the insurer sought the approval of the Securities and Exchange Commission (SEC) to extend it.
On Tuesday, August 19, 2019, the Nigerian Stock Exchange (NSE) informed the investing community that SEC granted the request by the insurance company to add three more weeks.
Sovereign Trust Insurance is selling 4.170 billion ordinary shares of 50 kobo each at 50 kobo to existing shareholders of the firm on the basis of one new ordinary share for every two held as at the close of business on Tuesday, January 15, 2019.
The fresh capital from the exercise would be used for the company’s operations, especially now that the National Insurance Commission (NAICOM) has asked operators in the sector to increase their capital base or merger with others or be shown the way out of the business.
“Further to our Market Bulletin of 28 June 2019, with reference number: NSE/RD/LRD/MB33/19/06/28, Dealing Members are hereby notified that the Securities and Exchange Commission (SEC) has approved a further extension of the offer period of Sovereign Trust Insurance Plc’s 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 15 January 2019.
“With this SEC’s approval, the offer initially scheduled to close on Wednesday, 31 July 2019 will now close on Wednesday, 21 August 2019,” the circular signed by Ms Lilian Dako on behalf of the Head of Listings Regulation Department at the NSE said.