Sovereign Trust Directors Offload ₦2.3bn Shares Ahead ₦20bn Capital Raise
Three directors of Sovereign Trust Insurance Plc have disposed of a combined ₦2.3bn worth of shares in the company, even as the insurer announced plans to raise up to ₦20bn in fresh capital to strengthen its balance sheet and expand its operations.
The Nigerian Exchange (NGX) disclosure showed that former Chairman, Mr. Oluseun Ajayi, executed the largest transaction with the sale of 500 million shares in five tranches on September 4, 2025, at an average price of ₦2.98 per unit. The transaction, valued at ₦1.49bn, was made public on September 8.
Following the disposal, Ajayi’s holdings dropped significantly from 744,104,573 units—representing 5.23 per cent of the company’s voting rights to 244,104,573 units or 1.72 per cent.
The same day, Non-Executive Director, Mr. Abimbola Oguntunde, sold 200 million units in three tranches at an average price of ₦2.95, translating to about ₦590m.
His stake reduced drastically from 200,335,414 units (1.41 per cent) to just 335,414 units (0.002 per cent).
Similarly, Executive Director, Mrs. Ugochi Odemelam, sold 80 million units in a single tranche at ₦2.95, worth ₦236m. Her shareholding declined from 88,419,351 units (0.62 per cent) to 8,419,351 units (0.06 per cent).
The large-scale disposals come at a time the insurer has disclosed plans to raise up to ₦20bn in fresh capital, subject to shareholder approval at its forthcoming 30th Annual General Meeting (AGM).
THE WHISTLER reported that in a notice to shareholders, Sovereign Trust Insurance said the capital injection will be executed through a mix of public offerings, private placements, or rights issues, either locally or in international markets.
The transaction, which may be underwritten and carried out in tranches, will have pricing determined by book building or other valuation methods, subject to regulatory approval.
The company also revealed that its board will seek authority to increase share capital by issuing new ordinary shares, amend its Memorandum and Articles of Association where necessary, and list the new securities on the NGX or other recognized exchanges. Professional advisers will be appointed to structure the offering and ensure compliance with regulatory requirements.
Management explained that the fresh capital is targeted at boosting underwriting capacity, enhancing financial resilience, and positioning Sovereign Trust Insurance to seize new growth opportunities in the evolving Nigerian insurance market.
Industry watchers note that the development aligns with ongoing regulatory reforms in the insurance sector aimed at improving solvency, risk management, and competitiveness.
Analysts say the company’s capital raise plan underscores its ambition to consolidate market share and unlock shareholder value in the long term.
The resolutions will be tabled for approval at the insurer’s 30th AGM, which management described as a “significant milestone” in its three-decade journey toward sustainable growth.
Sovereign Trust Directors Offload ₦2.3bn Shares Ahead ₦20bn Capital Raise is first published on The Whistler Newspaper
