Sovereign Trust Insurance Plc has moved forward with plans to raise N5 billion through a rights issue, marking a major step in its recapitalisation strategy and long-term expansion goals. The company recently completed the structuring phase of the offer, signalling that all internal arrangements and professional engagements have been finalised. This development was confirmed during a formal signing ceremony held at the firm’s headquarters in Lagos, clearing the path for the next stage of the capital-raising exercise.
The initiative is part of efforts to strengthen the company’s financial base in line with evolving regulatory requirements in Nigeria’s insurance sector. Industry reforms, particularly those tied to recapitalisation, have pushed insurers to improve their capital strength to remain competitive and sustainable. Speaking at the event, the Managing Director and Chief Executive Officer, Lucas Durojaiye, highlighted the importance of the fundraising exercise to the company’s future ambitions. He said, “In achieving our aspiration of becoming a top-five player in the Nigerian insurance industry, we have identified that a very robust capital base is critical to the success of our set agenda.”
He further urged shareholders to take advantage of the opportunity, adding, “Hence the need to call on our shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company.”
Under the terms of the offer, the company plans to issue over 2.5 billion ordinary shares at a price of N2.00 per share. Existing shareholders will be able to subscribe based on a ratio of three new shares for every 17 shares currently held.
The rights issue is expected to provide investors with an opportunity to increase their stake in the company while positioning the insurer for its next growth phase. Management also emphasised that the timing of the offer aligns with broader changes in the insurance industry, which are shaping a more competitive and capital-intensive market. Beyond raising funds, the company aims to strengthen its market position and become one of the most preferred insurance providers in Nigeria. It is also looking to enhance its appeal as an investment destination and employer of choice in the years ahead.
Overall, the N5 billion rights issue represents a strategic move by Sovereign Trust Insurance to meet regulatory expectations, boost investor confidence, and accelerate its growth trajectory in a rapidly evolving industry.
