SUNU finalises rights issue process, eyes market launch within weeks

SUNU Assurances Nigeria Plc has completed the internal phase of its N9.34 billion capital raise and is preparing to approach the market with a rights issue, subject to final approval from the Securities and Exchange Commission (SEC) Nigeria. The company is offering existing shareholders the chance to acquire additional shares, with a launch expected in the coming weeks.

At a Completion Board Meeting held in Lagos on Friday, the insurer signed off on all transaction documents, validated its offer circular, and obtained final approvals from directors and advisers, effectively concluding the structuring stage of the exercise.

The capital raise involves a rights issue of 2.08 billion ordinary shares priced at N4.50 each, positioning it among the more significant fundraising efforts in Nigeria’s insurance sector this year as firms brace for stricter capital thresholds and heightened competition.

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Having already secured approvals from the Nigerian Exchange Limited and a ‘No Objection’ from the National Insurance Commission, the transaction is now awaiting its final regulatory clearance.

SUNU’s Managing Director and CEO, Mr Samuel Ogbodu, said the offer is likely to open shortly after the last approval is received.

He noted that funds raised will be channelled into strengthening the company’s capital base, expanding operations, and upgrading technology, reflecting a broader strategy to scale and improve competitiveness.

The SEC had earlier cleared the rights circular and approved the registration of the securities, enabling the company to proceed to the completion stage and prepare for launch.

Subscription proceeds will be warehoused in designated interest-bearing accounts with a bank until the regulator authorises share allotment.

During the verification session, directors and professional advisers reviewed and confirmed the accuracy of disclosures contained in the rights circular, underscoring the company’s commitment to transparency.

After a detailed review, the board affirmed that the financial statements fairly represent the company’s position, with no undisclosed liabilities beyond routine operations and no pending litigation that could materially impact the offer. Directors also accepted full responsibility, both collectively and individually, for the integrity of the document – an important safeguard for investor confidence.

According to SUNU’s offer details, the proceeds will be deployed across key areas including capital strengthening, investment optimisation, market expansion, advertising, and digital transformation initiatives.

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This allocation highlights SUNU’s plan to reinforce its balance sheet, broaden its market reach, and enhance service delivery in an increasingly competitive landscape.

Ogbodu said the exercise goes beyond capital raising, stressing that it is aimed at positioning the company for its next growth phase in Nigeria’s insurance industry.

“We are strengthening our balance sheet to capture emerging opportunities, deepen our footprint, and invest in digital capabilities that will enhance efficiency and customer experience,” he added.