Consolidated Hallmark Insurance to raise N500m capital

From Left : Chief Andrew Odigie, Vice Chairman, Consolidated Hallmark Insurance Plc; Eddie Efekoha, Managing Director; Obinna Ekezie, Chairman and Efe Akhigbe,Managing Director Planet Capital, the Issuing House @ the signing ceremony in Lagos.

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Chuks Udo Okonta

Consolidated Hallmark Insurance Plc is set to raise N500 million from the capital market to boost its operations.

According to the firm, the capital to be raised will be used to finance the acquisition of a Life Insurance Company, after the deduction of the estimated Issue costs and expenses of N15,715,429 (representing 3.14 per cent of the Issue proceeds), the net issue proceeds of N484,284,571 will be utilized.

The underwriting firm will raise by way of right issue 1,000,000,000 billion ordinary shares of 50 kobo each at 50 kobo per share on the basis of 1 new ordinary share for every six ordinary shares of 50 kobo each held as at the close of business on Friday 25th August 2017.

The Chairman of the firm, Obinna Ekezie, said at the signing ceremony held yesterday in Lagos, that the the essence of the capital raising exercise is to fund the Company’s expansion by strategically taking advantage of emerging opportunities in the insurance industry, especially in the life insurance segment of our market.

He noted that this will aid in positioning your company as a market leader in the industry, continue on the path of profitability, robust balance sheet, creation of value to its shareholders and overall improvement in its perception in the market thereby making it more competitive, stressing that with the rights issue the company will be well positioned to achieve its strategic objectives and to deliver improved returns to all stakeholders, going forward.

“Consolidated Hallmark Insurance Plc is currently undergoing a digital transformation exercise which will enable it position itself strategically. It is believed that it would help the company deliver exceptional returns to shareholders, be profitable and increase its market share as part of a comprehensive five year strategic plan currently being implemented. The Company’s five year strategic plan is anchored on 12 key initiatives.

“The company has also finalized plans to revamp its agency unit to enable it position appropriately for micro insurance, taking advantage of the volume of sales accruable from the low-income class. Prompt and quality service delivery model will be designed to ensure that all customers are left with a long lasting impression,” he said.

The issuing company, Planet Capital Limited, said the shares to be issued by the Company pursuant to the Rights Issue will rank pari passu in all respects with the existing issued Ordinary Shares of the Company.

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