Insurance

Consolidated Hallmark Insurance records 100% subscription on right issue offer

Efekoha

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Chuks Udo Okonta

The recent Rights Issue embarked upon by Consolidated Hallmark Insurance (CHI) Plc was fully taken up by its shareholders, Inspenonline can report.

A statement by the firm affirmed that the company offered by way of Rights Issue 2,032,500,000 ordinary shares of 50 kobo each at 52 kobo per share, stressing that the result of the offer which closed on June 8, 2020 and has just been approved by the Securities and Exchange Commission (SEC) shows a 100 per cent subscription.

The success recorded by the company inspite of the prevailing tough economic environment from the COVID 19 pandemic is a demonstration of high confidence of the shareholders in the company.

Details of the basis of allotment as approved by the Securities Exchange Commission (SEC) shows that 99 shareholders who were provisionally allotted 681,465,926 ordinary shares accepted their rights in full and were fully allotted accordingly.

Additionally, out of those that accepted their rights in full, 68 shareholders applied for additional shares totaling 1,289,699,021 ordinary shares and were allotted 1,289,699,021 from the renounced rights, making the offer 100 per cent allotted.

The successful outcome of this rights issue is a significant boost to the company’s quest to meet the new capital regime announced by the National Insurance Commission (NAICOM). The new minimum capital requirement to operate as a General Insurance Business in Nigeria was raised from N3b to N5b by end of 31, December 2020 and to further increase to N10 billion by 30, September 2021.

Commenting on the successful outing, Group Managing Director/CEO of CHI Plc, Eddie Efekoha expressed delight at the good result despite the challenging period the offer was held during look-down occasioned by the coronavirus (COVID-19) pandemic.

According to him, “It is great to see investors’ confidence and trust in our company being exhibited with the full subscription of the rights offer, with several shareholders taking up their rights fully and applying for additional units at a time when investors’ appetite is dampened due to the ravaging pandemic.”

He further added that, “the rights issue is the first in the series of steps that will put our company on the track of achieving not just our recapitalisation objectives, but also the growth strategy as a group.

“We at CHI Plc are particularly happy with the positive response to the offer and would like to thank all our shareholders for their belief in the Board and Management of the organisation to always deliver excellent performance.”

In recent years, the company had proactively raised additional capital to strengthen its operations through rights issue and private placement totaling about N1.2 billion both of which were fully subscribed.

Sustained growth across the CHI Group
CHI Plc had continued to sustain its growth path when it published its unaudited Half Year Ended financial statement for the period ended June 30, 2020 recently. According to the report, the group’s performance which also includes Grand Treasurers Limited (GTL) CHI Capital Limited, CHI Microinsurance Limited and Hallmark Health Services Limited (HMO), achieved a Profit Before Tax (PBT) of N444.4 million when compared with the N390.5 million recorded in the corresponding period of 2019. This represents a 12 per cent rise.

The result also revealed growth in other financial indices of the Group. Gross Premium Written for the period grew from N5.16 billion in 2019 to N5.33 billion during the Half Year Ended June 30, 2020 while Total Assets rose from N11.682 billion as at June 30, 2019 to N12.170 billion during the corresponding period of 2020.

Meanwhile, arrangements are being fine-tuned to hold the company’s 25th Annual General Meeting on the 26th of August, 2020.

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