Insurers raise investors’ hopes with rights issue scorecards

Determined to increase shareholders’ confidence in the insurance sector and hopes of a better return on investments, the nation’s insurers are making inroads in securing various regulatory approvals.

The latest is from the Securities and Exchange Commission (SEC), which approved making public, particularly to the companies’ shareholders and other related parties, the result of offering.

Sovereign Trust Insurance Plc, one of the insurers, had ended on August 21, 2019, its offering of rights issue, after it was extended at the expiration of its initial closing date of July 31, 2019.

At the weekend, in an interview with The Guardian, the Deputy General Manager, Sales and Corporate Communications of the underwriting company, Segun Bankole, explained that a total of 4,170,411,648 ordinary shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary share for every two 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.

According him, 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.

The other two application forms, however, were rejected as the buyers did not qualified for the shares as at the qualification date.

In all, the offer was 72.50 per cent subscribed, which has been considered quite commendable by industry watchers, considering the bearish nature of insurance stocks in the market in recent times.

Investigations showed that 99 shareholders fully accepted their rights, totaling 1,262,022,678 ordinary shares, while nine others, with provisional allotment of 25,573,204 ordinary shares, partially accepted their rights totaling 6,430,000 ordinary shares and renouncing 19,143,204 ordinary shares.

Bankole added that 2,882,815,766 ordinary shares were fully renounced, while 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 has notified all shareholders that the allotment of the rights issue will be communicated by way of e-certificates in the names of all successful shareholders through the Company’s Registrars, Meristem Registrars Limited, not later than December 24, 2019.

The Managing Director of the company, Olaotan Soyinka, also reiterated 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.

“As the industry prepares for another round of recapitalisation in the year 2020, the company is committed to creating exceptional value to all its shareholders,” he said.