Goddy Egene
The Nigerian Stock Exchange (NSE) has
listed additional 4.170 billion ordinary shares of 50 kobo each of
Sovereign Trust Insurance Plc at N0.50 per share. The shares resulted
from the company’s
rights issue that was 72.5 per cent subscribed.
The company said: “The rights issue
offer was 72.5 per cent subscribed which has been considered quite
commendable by industry watchers considering the bearish nature of
insurance stocks in the market in recent times.”
According to the company, a breakdown of
the basis of allotment shows that 99 shareholders fully accepted their
rights totaling 1,262,022,678 ordinary shares, nine shareholders with
provisional allotment of 25,573,204 ordinary shares partially accepted
their rights totaling 6,430,000 ordinary shares while renouncing a total
of 19,143,204 ordinary shares.
The insurance firm added that a total of
2,882,815,766 ordinary shares were fully renounced, while a total of
19,143,204 ordinary shares were partially renounced, bringing a total
number of renounced ordinary shares to 2,901,958,970.
Shareholders of Sovereign Trust approved
the new capital raising plan for the insurance company to comply with
the new minimum capital requirement by the National Insurance Commission
(NAICOM).
The shareholders authorised the board of
the company to create 5.0 billion new ordinary shares of 50 kobo each
to increase its authorised share capital to N10 billion of 20.0 billion
ordinary shares of 50 kobo each. Shareholders also approved the proposal
to raise “additional equity capital for the company up to the maximum
of the authorised share capital” with additional mandate to the board to
absorb excess money in the event of oversubscription of the initial
offer.
Under its capital raising plan,
Sovereign Trust Insurance could raise funds by issuing new shares to
existing shareholders, new general retail investors, existing and new
strategic investors or a combination of many means of capital raising.
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