Former Chairman of Sovereign Trust Insurance Plc, Mr. Oluseun Ajayi, has sold 500 million units of the company’s shares valued at N1.49 billion.
The sale, carried out in five tranches at an average price of N2.98, was one of three director dealings disclosed on the NGX on September 8, though executed on September 4, 2025.
According to the company’s latest financial statement, Mr. Ajayi’s stake stood at 744,104,573 units, or 5.23% of voting rights, but after the sale, it has decreased to 244,104,573 units, representing 1.72%.
That same day, Non-Executive Director, Mr. Abimbola Oguntunde, sold 200 million units in three tranches at an average of N2.95, worth about N590 million.
Similarly, Executive Director, Mrs. Ugochi Odemelam, offloaded 80 million units in a single tranche at N2.95, valued at N236 million.
These dealings significantly boosted market activity, driving volume on the stock to 1.4 billion shares on September 4, with a total value of N4.2 billion.
Although the reasons for the sales remain unclear, analysts suggest the directors may be reshaping their portfolios or preparing for the company’s planned N20 billion capital raise, which could come through a rights issue, public offer, or private placement.
Sovereign Trust Insurance Plc recently announced plans to raise N20 billion in fresh capital, with the proposal set to go before shareholders at its Annual General Meeting (AGM) on September 25, 2025.
In a notice filed with the Nigerian Exchange, the company explained that the fundraise could be executed through a mix of options, including public offers, private placements, or rights issues.
These may be carried out in either domestic or international markets, with pricing to be determined through book building or other standard valuation methods.
Alongside the capital raise, the Board of Directors has recommended a dividend of N0.05 per share (5 kobo on every 50 kobo ordinary share), subject to withholding tax.
If approved, payment will be made to shareholders whose names appear in the Register of Members as of September 5, 2025.
The dividend proposal comes on the back of a strong earnings performance.
Investor confidence has been strong, with the stock surging over 173% year-to-date as of market close on September 8 on the NGX, reflecting the bullish momentum across the insurance sector.
Sovereign Trust Insurance Plc, traded on the NGX under the ticker SOVRENINS, opened 2025 at N1.12 per share.
The stock slipped to N1.00 in January and dipped further to N0.98 in the first quarter.
The stock slipped to N1.00 in January and dipped further to N0.98 in the first quarter.
The third quarter has been its strongest yet, with the stock surging more than 128%, supported by a market volume of 2.1 billion shares in Q3 as of the close of trade on September 8, 2025.
It now trades at N3.06 per share.