Sovereign Trust Insurance to Launch N5bn Rights Issue

Sovereign Trust Insurance Plc is preparing to execute a N5 billion rights issue as part of its recapitalization strategy. This announcement was made during a formal signing ceremony at the company's headquarters in Lagos.

The rights issue is intended to bolster the firm's capital base in alignment with the Nigerian insurance industry's recapitalization act. Luca Durojaiye, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, emphasized that raising capital is crucial for the company's future ambitions to become one of the top five players in Nigeria's insurance sector.

The company is urging shareholders to fully exercise their rights to subscribe to the issue, which will involve a total of 2,510,848,144 ordinary shares offered at a price of N2.00 per share. The subscription ratio is set at three new ordinary shares for every 17 shares currently held, providing existing investors a unique opportunity to increase their stake in the company and grow their wealth in the near future.