SUNU Assurances Seeks N9.34bn Rights Issue For Expansion

SUNU Assurances Nigeria Plc has announced plans to raise to N9.34bn through a Rights Issue to existing shareholders, as the company moves to strengthen its capital base and support future growth.

The decision was taken at a meeting of the Board of Directors in line with the disclosure requirements of Nigerian Exchange Limited (NGX) for listed companies.

Under the approved resolution, the insurer will increase its issued share capital from N2.91bn, currently divided into 5.81 billion ordinary shares of 50 kobo each, to N3.94bn, comprising 7.89 billion ordinary shares of 50 kobo each.

This will be achieved through the creation and issuance of 2.08 billion new ordinary shares.

The new shares will be offered to existing shareholders by way of a Rights Issue on the basis of five (5) new ordinary shares for every fourteen (14) ordinary shares held, at an offer price of N4.50 per share.

The offer remains subject to the approval of relevant regulatory authorities, including the Nigerian Exchange Limited.

According to the company, the proposed capital raise is in the best interest of SUNU Assurances and its shareholders, and is intended to enhance the company’s financial capacity and operational resilience.

As part of the process, the Board also approved the key transaction documents required to execute the offer, including the Rights Circular and the Vending Agreement, as well as any ancillary documents necessary for the successful completion of the exercise.

The Board further authorised management to appoint financial advisers, legal advisers, professional printers, advertising agencies and other consultants required for the transaction, and to settle all associated fees.

In addition, any two directors of the company, or a director and the company secretary, were authorised to negotiate, finalise, execute and deliver all offer-related documents, as well as take any actions deemed necessary to implement and complete the Rights Issue.

The company secretary was also mandated to file the approved changes in SUNU Assurances’ share capital with the Corporate Affairs Commission (CAC), in compliance with statutory requirements.

SUNU Assurances Nigeria Plc reaffirmed that the Rights Issue forms part of its broader strategy to reinforce its balance sheet and position the company for sustainable long-term growth within Nigeria’s insurance market.