The Nigerian Exchange Limited (NGX) has officially listed an additional 2.864 billion ordinary shares of 50 kobo each from Sovereign Trust Insurance Plc on its daily official list. The admission of these shares resulted from Sovereign Trust’s Rights Issue.
In accordance with the NGX’s weekly report, the total issued and fully paid-up shares of Sovereign Trust have now increased from 11.364 billion to 14.228 billion ordinary shares. The NGX informed Trading Licence Holders of the listing on January 18, 2024, emphasizing that the additional shares arose from the company’s rights issue.
Sovereign Trust Insurance successfully raised N1.421 billion in new equity funds through the rights issue in 2023. The proceeds were earmarked for business expansion, meeting working capital requirements, development of retail products, enhancement of the investment portfolio, and covering offer expenses after the deduction of estimated issue costs.
The chairman of Sovereign Trust Insurance, Oluseun Ajayi, highlighted that the rights issue aligns with the company’s strategic objectives, providing a competitive edge and an opportunity for market expansion in the highly competitive Nigerian insurance industry. Ajayi emphasized that the capital raised would contribute to the company’s goal of being a dominant player in the insurance sector, focusing on market leadership positions.
He encouraged shareholders to participate fully in the rights issue, underscoring the board’s commitment to building long-term shareholder value and fostering the company’s growth in the insurance market.