Sovereign Trust Insurance Plc has officially moved into the execution phase of its N5bn recapitalisation drive, marking the successful completion of the structuring phase for its highly anticipated Rights Issue.
The announcement, made during a formal signing ceremony at the company’s headquarters in Lagos, signals that all internal processes and professional engagements are now finalised, clearing the path for the firm to bolster its capital base in alignment with the Nigerian Insurance Industry Recapitalisation Act.
The move is seen as a strategic pivot for the underwriting firm as it seeks to dominate a shifting domestic market.
The ceremony was headlined by the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Lucas Durojaiye, who emphasised that the capital raise is the engine room for the company’s future ambitions.
He said, “In achieving our aspiration of becoming a top-five player in the Nigerian insurance industry, we have identified that a very robust capital base is critical to the success of our set agenda.
“Hence the need to call on our shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company.”
He further elaborated on the company’s long-term vision for its stakeholders and the broader economy, noting that Sovereign Trust Insurance Plc is working assiduously toward being one of the most preferred insurance companies in the country for people to do business with and invest in, as well as being the choice employer of labour in the years ahead.
With the professional signing concluded, the company is now prepared to offer a total of 2,510,848,144 ordinary shares to its existing investors. The Management issued a direct call to action for its current shareholder base, enjoining all shareholders to take advantage of this unique opportunity by maximally taking up their rights with a view to increasing their stake in the company and growing their wealth in the very near future.
The Management added that the timing is intentional, noting that the company is poised to move on to the next phase of its growth stage as NIIRA signals a new direction for the insurance industry in the country.
Shareholders of STI Plc will be eligible to participate in the offer based on the finalised terms of 2,510,848,144 ordinary shares at an offer price of N2.00 per share with a subscription ratio of three new ordinary shares for every 17 shares currently held.
The successful conclusion of this Rights Issue is expected to significantly enhance STI’s underwriting capacity, allowing the firm to take on larger risks and improve its competitive edge in a consolidating industry.
