BY NKECHI NAECJE-ESEZOBOR—Sovereign Trust Insurance (STI) Plc has announced a ₦5.02 billion rights issue in a move aimed at bolstering its capital base and positioning the company for sustained growth within Nigeria’s competitive insurance landscape.
According to details in the rights circular, the insurer is offering 2.51 billion ordinary shares of 50 kobo each at ₦2.00 per share. The offer is structured on the basis of three new shares for every 17 shares held by shareholders whose names appeared in the company’s register as of March 17, 2026.
The rights issue will be tradable on the floor of the Nigerian Exchange Group, providing shareholders with flexibility to either take up their rights or trade them within the offer period.
The acceptance window opened on May 4, 2026, and is scheduled to close on June 10, 2026. During this period, shareholders are expected to complete acceptance and payment in compliance with regulatory guidelines.
Provisional allotments will be made based on existing shareholdings, while any shares not subscribed to by the close of the offer will be redistributed among interested investors, in line with rules set by the Securities and Exchange Commission.
Successful applicants will have their shares credited electronically to their Central Securities Clearing System (CSCS) accounts, while share certificates will be issued to investors without CSCS details.
The company advised shareholders who do not receive their rights circulars to contact their stockbrokers or registrars promptly for assistance.
Key advisers to the transaction include Cordros Securities Limited as lead stockbroker, Cordros Advisory Services Limited as lead issuing house, and Meristem Registrars and Probate Services Limited as registrars.
Sovereign Trust Insurance noted that the capital raise forms part of its broader strategy to reinforce its financial position and expand operational capacity in the evolving insurance market.
