Sovereign Trust Insurance launches N5.02bn rights issue
Sovereign Trust Insurance Plc STI
Nike Popoola
Sovereign Trust Insurance (STI) Plc has launched a N5.02 billion rights issue as part of efforts to strengthen its capital base and support future growth, offering existing shareholders the opportunity to increase their stakes in the company.
Details contained in the rights circular show that the insurer is offering 2,510,848,144 ordinary shares of 50 kobo each at N2.00 per share, structured on the basis of three new shares for every seventeen shares held as of March 17, 2026 for those whose names appear in the company’s register of members.
According to the details of the offer, the rights issue will be tradable on the floor of the Nigerian Exchange Group, allowing shareholders the option to trade their rights within the stipulated period.
The acceptance list for the offer opens on May 4, 2026, and will close on June 10, 2026, during which shareholders are expected to complete the acceptance and payment process in line with regulatory requirements.
The company stated that provisional allotments would be made based on shareholders’ existing holdings, while additional shares not taken up by the closing date would be redistributed among interested investors in accordance with Securities and Exchange Commission guidelines.
It also noted that successful applicants would receive their allotments through electronic credit to their Central Securities Clearing System accounts, while share certificates would be dispatched to those without CSCS details.
The firm advised shareholders who do not receive their rights circulars by May 4 to contact their stockbrokers or registrars for necessary assistance.
Key professional parties to the issue include Cordros Securities Limited as lead stockbroker, Cordros Advisory Services Limited as lead issuing house, and Meristem Registrars and Probate Services Limited as registrars, among others.
Sovereign Trust Insurance said the rights issue forms part of its strategic efforts to strengthen its capital base and enhance operational capacity within Nigeria’s competitive insurance sector.
