STI to raise capital through rights issue


DSC_3475-685x320Sovereign Trust Insurance Plc (STI) is set to raise additional equity capital by offering one new ordinary share for every three ordinary shares of 50 kobo each.

This according to the underwriting firm, is in fulfillment of one of the resolutions reached by its shareholders at the 18th annual general meeting (AGM) held last year, which empowered the directors to raise additional equity capital by way of special placement or public offer/rights issue or a combination of any of them.

The Managing Director, STI, Wale Onaolapo who made this known in Lagos, said the plan to embark on another rights issue is aimed at consolidating the ownership of the firm by its existing shareholders.

He said: “The rights issue, which is due to commence very soon will put on offer one new ordinary share for every three ordinary shares of 50 kobo each held in the company as at the close of register during the last annual general meeting.

“Consequently, the management enjoins all shareholders of the company to take full advantage this second time around, by fully exercising their rights in the proposed rights issue as a way of consolidating and increasing their stake in the ownership of this very dynamic and forward-looking insurance company in the country.

“The company, more than ever before, is poised to take the insurance business to a greater height as it gravitates to the next phase of its growth agenda. The management has set a growth agenda, which is aimed at positioning the underwriting firm as one of the top players in the insurance industry, particularly, in the oil and gas sector where it has developed very unique expertise and professionalism.”

Onaolapo called on shareholders to lend total support to the rights issue once it’s placed on offer. This will help in achieving the various objectives that have been set by the organisation.

He noted that the company is committed to creating exceptional value to all its shareholders.

In achieving the huge tasks, he said they have identified that a very robust capital base is critical to the success of the set agenda hence the need for shareholders to grow their investments in the company.

He said the firm is working towards being one of the most preferred insurance companies in the country for people to do business with, invest in as well as be the choice employer of labour.


The Nation