Consolidated Hallmark Insurance Plc, CHI, has recorded 100 percent subscription to its recently concluded rights issue. Recall that the company offered by way of Rights Issue 2,032,500,000 ordinary shares of 50 kobo each at 52 kobo per share.
The company said that the result of the offer which closed on June 8, and has been approved by the Securities and Exchange Commission, SEC, shows a 100 percent subscription. In a statement, the company said the success recorded by the company in spite of the prevailing tough economic environment from the COVID-19 pandemic is a demonstration of high confidence of the shareholders in the company.
The statement read: “Details of the basis of allotment as approved by 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 totalling 1,289,699,021 ordinary shares and were allotted 1,289,699,021 from the renounced rights, making the offer 100 percent 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 N3 billion to N5 billion 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, Mr. Eddie Efekoha expressed delight at the good result despite the challenging period the offer was held which was during look-down occasioned by the Covid-19 pandemic.
He said: “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.
“The rights issue is the first in the series of steps that will put our company on the track of achieving not just our recapitalization 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 organization to always deliver excellent performance.”