Following a three week rights issue extension granted to Sovereign Trust Insurance Plc by the Securities and Exchange Commission, existing shareholders offer to take up their rights in the company will close Wednesday, August 21, 2019.
This is contained in a market bulletin obtained from the Nigerian Stock Exchange’s (NSE) official website signed by Lilian Dako, head listings and regulation department of the NSE.
The bulletin indicates that the rights issue was earlier scheduled to wrap up on Wednesday, July 31, 2019, but the insurer sought and got the approval of the Securities and Exchange Commission (SEC) to extend it.
Sovereign Trust’s rights issue entails the sale of 4.170 billion ordinary shares of 50 kobo each at 50 kobo to existing shareholders, on the basis of one new ordinary share for every two held as at the close of business on Tuesday, January 15, 2019.
“Further to our Market Bulletin of 28 June 2019, with reference number: NSE/RD/LRD/MB33/19/06/28, Dealing Members are hereby notified that the Securities and Exchange Commission (SEC) has approved a further extension of the offer period of Sovereign Trust Insurance Plc’s Rights Issue of 4,170,411,648 ordinary shares of N0.50 each at N0.50 per share on the basis of one new ordinary share for every two ordinary shares held as at 15 January 2019.
With this SEC’s approval, the offer initially scheduled to close on Wednesday, 31 July 2019 will now close on Wednesday, 21 August 2019,” the bulletin from the NSE said.
According to the company, the capital raised from the exercise would be used for the company’s operations, in wake of National Insurance Commission’s (NAICOM) directive to increase capital base.