CHI gets shareholders’ nod to raise fresh capital
The shareholders of Consolidated Hallmark Insurance Plc has authorised an increase in the shares of the company from the current 10 billion units of 50 Kobo par value per share to 15 billion, leading to the creation of an additional five billion units.
The shareholders, who gave the approval during the Extraordinary General Meeting (EGM) held in Lagos, said with the approval, the Share Capital of the company will thus be increased from N5 billion to N7.5 billion.
Shareholders also at the meeting approved an additional capital raise, through private placement of 1.13 billion units at the price of 65 Kobo per share, which would bring in an additional N734.5 million to the coffers of the company.
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 N500 through the Rights Issue to existing shareholders of one billion 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, Eddie Efekoha, said he was optimistic of a very successful outing at the meeting, as shareholders of the company have often been delighted with the regular dividend payments over the years.
According to Efekoha, out of ten financial years that the Company has been quoted on the NSE, it has paid out dividends seven times amounting to a total of N1.22 billion.
Also, the deployment of capital raised during the Rights Issue is impacting positively in results as noticeable in the impressive performance during the Nine Months Ended 30th September 2018.
Profit After Tax rose significantly to N356 million from the N209 million recorded during the corresponding period of 2017 while Gross Premium Income rose to N5.4billion from the previous N4.5 bilion.