The recent rights issue embarked upon by Consolidated Hallmark Insurance (CHI) Plc was fully taken up by its shareholders, the Group Managing Director/Chief Executive Officer (CEO) of CHI Plc, Mr. Eddie Efekoha has said.
Efekoha, who made this known in a statement, said the company offered rights issue of 2,032,500,000 ordinary shares of 50 kobo each at 52 kobo per share.
According to him, the result of the offer which closed on June 8, and has just been approved by the Securities and Exchange Commission (SEC,shows a 100 per cent subscription.
He stated that 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.
He said: “Details of the basis of allotment as approved by the Securities Exchange Commission (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 totaling 1,289,699,021 ordinary shares and were allotted 1,289,699,021 from the renounced rights, making the offer 100 per cent 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 N3billion to N5billion by end of 31, December 2020 and to further increase to N10 billion by 30 September 2021.”
‘’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,’’ he added.
