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In order to meet the capital raising directive on recapitalisation, Sovereign Trust Insurance (STI) Plc has listed additional 4.17 billion ordinary shares of 50 kobo each on the Nigerian Stock Exchange (NSE).
According to the Head, Listings Regulation Department of the Exchange, Godstime Iwenekhai, the additional shares arose from the company’s recent Rights Issue.
Iwenekhai stated that while the exercise recorded 72.5 per cent subscription, the additional ordinary shares listed had been registered by the Securities and Exchange Commission (SEC).
With the listing of the additional 4.17 billion ordinary shares, the total issued and fully paid up shares of STI has increased from 8.34 billion ordinary shares of 50 kobo each to 12.51 billion ordinary shares of 50 kobo each.
STI had sought to raise N2.09 billion from existing shareholders to increase its capital base to position it in better stead for large-ticket transactions.
STI offered 4.17 billion ordinary shares of 50 kobo each at a price of 50 kobo per share. As Rights, the new shares issued were pre-allotted on the basis of one new share for every two ordinary shares held as at the close of business on January 15, 2019.
Application list for the Rights Issue had opened on Monday June 24, 2019 and was to close on Wednesday July 31, 2019. However, the company secured regulatory approvals to extend the application period to Wednesday August 21, 2019.
Its shareholders had approved a new capital raising plan for the insurance company and authorised its board to create five billion new ordinary shares of 50 kobo each to increase its authorised share capital to N10 billion of 20 billion ordinary shares of 50 kobo each.
The 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.
