Consolidated Hallmark Insurance to raise N500m additional capital on rights issue

Underwriting firm, Consolidated Hallmark Insurance Plc is embarking on a rights issue to raise N500 million for business expansion. Specifically, the net proceed of the issue will be applied towards financing the acquisition of a life insurance company.

In this vein, the Company is offering to its existing shareholders 1,000,000,000 (one billion) ordinary shares of 50 kobo each at 50kobo.

The offer which was unveiled at Completion Board meeting held in Lagos will open on 16th October 2017 and closes on 22nd October 2017, with Planet Capital Limited as the issuing house.

Obinna Ekezie, chairman of the Company speaking at the meeting said, “While CHI has continued to perform well on several parameters, the essence of this 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 segment of the market.

Ekezie also said 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.

The company shareholders had authorized the board at its last Annual General Meeting held 11th May 2017 among other things to raise additional capital up to N2.5 billion by way of issuance of shares subject to obtaining the relevant regulatory approvals in accordance with the Company’s Memorandum and Article of Association and the applicable laws. 

Modestus  Anaesoronye