SUNU Assurances Nigeria Plc has launched a N2.08 billion rights issue aimed at strengthening its capital position and expanding business operations, offering existing shareholders the opportunity to increase their stakes in the company.
The development was confirmed in a release on Monday, April 13, 2026, which revealed that the offer had received approval from the Securities and Exchange Commission (SEC).
Under the offer, the company is issuing 2,075,285,714 ordinary shares of 50 kobo each at N4.50 per share. The rights issue is structured on the basis of five new shares for every fourteen shares held by shareholders listed in the company’s register as of February 12, 2026.
According to the approval letter dated April 10, 2026, the SEC stated that the securities had been registered in line with the Investments and Securities Act 2025 and the Commission’s regulations. The approval letter, signed by Abdulkadir Abbas, also outlined specific conditions the company must comply with in executing the offer.
The rights offer officially opened on April 13, 2026, and will close on May 20, 2026. Only shareholders whose names appeared on the company’s register by the February 12 qualification date are eligible to participate.
The issuing house for the transaction, NSL Capital Partners Limited, confirmed that the rights will be tradable on the Nigerian Exchange Limited (NGX) during the offer period. This allows shareholders who choose not to subscribe to the new shares to sell their rights in the market.
The capital raise reflects SUNU Assurances’ strategic move to strengthen its balance sheet at a time when Nigeria’s insurance sector is undergoing significant reforms and recapitalisation. By opting for a rights issue, the company is prioritising existing shareholders, giving them the opportunity to maintain their ownership levels while injecting fresh capital into the business.
The offer price of N4.50 per share may also encourage participation, as rights issues are often priced attractively to ensure strong subscription levels. Proceeds from the offer are expected to support underwriting expansion and overall operational capacity, positioning the insurer to capture growth opportunities in Nigeria’s largely underpenetrated insurance market.
The company’s capital raising effort also reflects broader industry developments following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA), which introduced new capital requirements aimed at strengthening the financial stability and competitiveness of insurance companies.
In terms of market performance, SUNU Assurances closed trading on April 13, 2026, at N4.20 per share, slightly below the N4.50 rights issue price. The stock began the year trading at N5.50 but has since declined by 23.64% year-to-date, ranking 134th on the NGX in terms of performance.
Despite the recent decline, the stock delivered remarkable gains in the past, recording a 581% increase in 2024, although it was unable to sustain that momentum in 2025.
Currently, SUNU Assurances has 5.81 billion shares outstanding and a market capitalisation of about N24.4 billion, making it the 84th most valuable stock on the Nigerian Exchange and accounting for roughly 0.019% of the total NGX equity market value.
For investors, the rights issue represents both an opportunity and a strategic decision. Shareholders can either increase their exposure by subscribing to the offer or trade their rights on the exchange during the offer window.
