Sovereign Trust Insurance Plc has announced plans to raise up to ₦20bn in fresh capital to strengthen its operations and drive business expansion, subject to shareholders’ approval at its 30th Annual General Meeting (AGM).
According to a notice to shareholders seen by THE WHISTLER, the company is seeking authorization to execute the fundraising through a combination of public offerings, private placements, or rights issues, either in the Nigerian or international capital markets.
The transaction may be executed in tranches, with pricing to be determined via book building or other valuation methods, subject to regulatory approvals.
The proposed capital raise, which may be underwritten, is aimed at boosting Sovereign Trust Insurance’s balance sheet, enhancing underwriting capacity, and positioning the company to take advantage of emerging opportunities in Nigeria’s insurance sector.
The insurer also disclosed plans to increase its share capital by the number of new ordinary shares required for the fundraising.
The Board of Directors will be empowered to allot the new shares, amend the company’s Memorandum and Articles of Association accordingly, and ensure listing of the new securities on the Nigerian Exchange Limited (NGX) or other recognized exchanges.
“The Directors are hereby authorised to perform all such acts and appoint professional advisers necessary to give effect to the resolutions, including determining the structure of the capital raise and ensuring compliance with regulatory requirements,” the notice stated.
The company’s leadership emphasized that the capital injection will strengthen Sovereign Trust Insurance’s competitiveness in the market and ensure compliance with industry capitalization requirements, while also boosting shareholder value.
With the Nigerian insurance industry undergoing regulatory reforms to improve solvency and resilience, analysts say the move positions Sovereign Trust Insurance to consolidate growth and expand its footprint in key segments of the market.
The 30th AGM, where shareholders will deliberate and vote on the resolutions, is expected to mark a significant milestone in the company’s three-decade journey and its efforts to reposition for long-term growth.
