Nigeria: NSE Lists CHI's Additional 2.03bn Shares

25 August 2020

The Nigerian Stock Exchange (NSE) has listed an additional 2.033 billion ordinary shares of Consolidated Hallmark Insurance (CHI) Plc on its daily official list.

In a notice signed by the head, Listings Regulation Department, NSE, Godstime Iwenekhai, said the additional shares listed on the Exchange arose from the company's rights issue of 2.033 billion ordinary shares of 50 kobo each at 52 kobo per share on the basis of one new ordinary shares for every four ordinary shares held as at February 3, 2020.

The rights Issue was 100 per cent subscribed, fetching the company about N1.056 billion. Also, with this listing of the additional 2.033 ordinary shares, the total issued and fully paid-up shares of Consolidated Hallmark Insurance has now increased from 8.672 billion to 10.705 billion ordinary shares of 50 kobo each.

Speaking on the successful of the rights issue, group managing director/CEO of CHI, Mr Eddie Efekoha, said, the outcome of the rights issue was a significant boost to the company's quest to meet the new capital regime announced by the National Insurance Commission.

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 December 31, 2020 and to further increase to N10 billion by September 20, 2021.

Efekoha 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 recapitalisation objectives, but also the growth strategy as a group."

He added that "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."

The company said in recent years, it had proactively raised additional capital to strengthen its operations through rights issue and private placement totalling about N1.2 billion, both of which were fully subscribed.

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