By Cynthia Alo
Sovereign Trust Insurance Plc has said that its Rights Issue offer recorded 72.5 percent subscription.
In a recent statement, the Securities and Exchange Commission, SEC, gave approval for the 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.
In a statement signed by the Spokesperson for Sovereign Trust, Mr. Segun Bankole, stated: ‘’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.
‘’At the close of the Offer period, a total of 110 acceptance forms for 3,053,642,718 ordinary shares of the Rights Issue were received out of which, 108 forms were found to be valid and accepted while two application forms were rejected as the buyers did not qualify for the shares as at the qualification date. In all, the Rights Issue offer was 72.5 percent subscribed which has been considered quite commendable by industry watchers considering the bearish nature of insurance stocks in the market in recent times.’’
‘’A further breakdown of the basis of allotment shows that 99 shareholders fully accepted their rights totalling 1,262,022,678 ordinary shares, nine (9) shareholders with provisional allotment of 25,573,204 ordinary shares partially accepted their rights totalling 6,430,000 ordinary shares while renouncing a total of 19,143,204 ordinary shares. No applications were traded on the floor of The Nigerian Stock Exchange during the period of the Offer. ‘’
Bankole, further said: ‘’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 the 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 totalling 1,146,768,930 ordinary shares of 50 kobo each shall revert to the company’s Authorized Share Capital.’’