Yemisi Izuora-Lagos
Risk firm Sovereign Trust Insurance Plc (STI) is planning to raise N1.15 billion fresh capital through rights issue through a notice made available by Cordros Capital which explained that the notice is coming on the heels of a recent approval granted the company by its shareholders.
The offer reveals that Sovereign Trust would be issuing 2,290,585,798 ordinary shares of 50 kobo each at N0.50 per share expecting to hit a gross issue proceed of N1.145 billion.
The provisional allotment would be on the basis of one (1) new ordinary share for every three (3) ordinary shares of 50 Kobo each held as at the close of business on Friday, 30 May, 2014.
The notice further said that purpose of the rights issue is to provide the company with the required funds that will enhance its growth and profitability.
The notice further said that 50 percent of the proceeds would be used to fortify investment assets, 30 percent for the repayment of (Daewoo) bond and another 20 percent for the enhancement of working capital.
The proposed rights issue is expected to kick off next week, January 15 after Securities and Exchange Commission (SEC) approval.