Consolidated Hallmark to raise fresh capital
Consolidated Hallmark Insurance Plc says it has plans to seek the formal approval of its shareholders to raise its capital during its upcoming Extraordinary General Meeting in Lagos.
In a statement, the firm said it would seek the formal approval of shareholders for the increase in authorised shares of the company from the current 10 billion units of 50 Kobo par value per share to fifteen billion through the creation of an additional five billion units.
It stated, “The share capital of the company will thus be increased from N5bn to N7.5bn.
“Shareholders will also at the meeting formally give their approval for additional capital raise through private placement of 1,130,000,000 units at the price of 65 Kobo per share.”
This private placement, it added, would bring in an additional N734.5m to the coffers of the company.
The firm said, “It is next in the series of proactive efforts of the board and management to boost the working capital of the company and adequately position it as a leading player in the underwriting of big ticket insurance transactions, having successfully raised N500m through the rights issue to existing shareholders of 1,000,000,000 units that was 108 per cent subscribed during the last quarter of 2017 but concluded in the first quarter of 2018.”
The Managing Director of the company who is also the current president of the Chartered Insurance Institute of Nigeria, Mr. Eddie Efekoha, said he was optimistic of a very successful outing at the meeting as shareholders of the company had often been delighted with the regular dividend payments over the years.
Out of 10 financial years that the company had been quoted on the Nigerian Stock Exchange, he noted, it had paid out dividends seven times amounting to a total of N1.22bn.
The firm stated, “Also, the deployment of capital raised during the rights issue is impacting positively on results as noticeable in the impressive performance during the nine months ended 30th September 2018.
Profit after tax rose significantly to N356m from the N209m recorded during the corresponding period of 2017 while gross premium income rose to N5.4bn from the previous N4.5bn.”
Efekoha said the future plans of the company included broadening its product offerings to take advantage of the on-going market development initiatives of the industry regulator, and strengthening its technology in order to deepen its footprints in the retail market whilst delighting its existing corporate customers.