Far from some people’s expectation, investors are still willing and continually taking strong position in the nation’s insurance industry.
They are confident and putting down their monies, believing that the future of the financial services industry holds big in insurance sector, where penetration is still less than one percent despite the large population.
This can explain why Sovereign Trust Insurance Plc’s recent Rights Issue offer was 72.50 percent subscribed, which has been considered quite commendable by industry watchers considering the bearish nature of insurance stocks in the market in recent times.
The position will become firmly at the end of the industry’s ongoing recapitalization with the level of flow of fund into the industry. The recapitalization is billed to end by June 30, 2020 expect the regulator says otherwise.
Read also: Reps begin audit of insurance premium by MDAs
Following the successful completion of the Rights Issue Offer of Sovereign Trust Insurance Plc (Sovereign Trust or the Company), the Securities and Exchange Commission, (SEC) has given approval to the underwriting firm to make public to the company’s shareholders and other related parties the result of the offer which ended on August 21, 2019, after it was extended at the expiration of its initial closing date of July 31, 2019.
It will be recalled that a total of 4,170,411,648 ordinary shares of 50 kobo each at 50 kobo per share on the basis of (1) new ordinary share for every (2) ordinary shares of 50 kobo each held in the Company as at the close of register on January 15, 2019 was placed on offer to the Company’s shareholders.
Olaotan Soyinka, managing director of the underwriting firm has also reiterated the fact that the company has set a growth agenda which is aimed at positioning the insurance company as one of the top players in the industry, particularly, as the industry prepares for another round of recapitalization in the year 2020. He equally noted that the company is committed to creating exceptional value to all its Shareholders.
Segun Bankole, spokes person of the company stated that a total of 2,882,815,766 ordinary shares were fully renounced, while a total of 19,143,204 ordinary shares were partially renounced, bringing a total number of renounced ordinary shares to 2,901,958,970. Out of the 99 shareholders that accepted their rights in full, 57 shareholders applied for additional 1,755,190,040 ordinary shares and were allotted in full.
The un-allotted shares totaling 1,146,768,930 ordinary shares of 50 kobo each shall revert to the company’s Authorized Share Capital.
Consequently, the Management of Sovereign Trust Insurance Plc has notified all Shareholders that the allotment of the rights issue will be communicated by way of e-certificates through the Company’s Registrars, Meristem Registrars Limited.
