CHI announces success of N500 million rights issue

Managing Director Consolidated Hallmark Insurance Plc, Eddie Efekoha

Consolidated Hallmark Insurance (CHI) Plc, has announced that the N500million from existing shareholders through a Rights Issue was successful.

The company had late last year issued 1,000,000,000 ordinary shares of 50 kobo each at 50 kobo per share to raise fresh capital.

The rights issue was the first time CHI would access the market 10 years after listing on the Exchange.

According to the results of the offer, about 173 applications were received for 1,000,912,962 shares, indicating that it was 100.09 per cent subscribed.

The Group Managing Director CHI Plc, Eddie Efekoha, had called on shareholders to take advantage of the offer, and continue to enjoy good returns on their investments in the future.

He had said the offer was made at a high discount, so as to compensate the shareholders, who had been with them over the years.

According to him, the insurance firm has been paying dividend regularly over the years, and would continue to reward shareholders, adding that the company had grown its gross premium from N1billion to N6billion, and paid a total of N1.1billion in dividends.

“As part of five year strategic plan, we need to raise capital. The Rights Issue is being done at a very discounted rate. We are offering it at 50kobo, but valuation has put the worth of the shares above that offering price. We are using the offer to say thank you to our existing investors for having remained with for the last 10 years. We need to say thank you by pricing it at par value,” Efekoha had said.

The GMD said the funds would be used to invest in opportunities they have identified.

“Apart from other areas, the National Insurance Commission (NAICOM), is considering micro insurance; we believe as a company that has been giving licence to do general business, we have equally applied for a licence to do micro life. So for a start, that will be one of ways to apply this money. We are inching to grow our retail business. As part of our strategic plan, there are some businesses that are connected to what we do. We might talk about the life, there is equally health insurance, we are going into that as well,” he said.

Efekoha had expressed high optimism that as Nigeria exits recession, more people would be empowered, and they would buy more insurance products, which means more business for operators in the industry.

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