Consolidated Hallmark Insurance (CHI) Plc, says the recent rights issue was fully taken up by its shareholders.
The company offered by way of rights 2,032,500,000 ordinary shares of 50 kobo each at 52 kobo per share. The company statement noted that the result of the offer which closed on June 8, 2020, showed a 100 per cent subscription.
The success recorded by the company in spite of the prevailing tough economic environment from the Covid-19 pandemic, was 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), showed that 99 shareholders who were provisionally allotted 681,465,926 ordinary shares accepted their rights in full and were fully allotted accordingly.
Out of those that accepted their rights in full, 68 shareholders applied for additional shares totalling 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 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 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 adds 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.
