Consolidated Hallmark Insurance Extends Rights Issue

By Dipo Olowookere

Closing date for the rights issue of Consolidated Hallmark Insurance (CHI) Plc has been extended by one month, the Nigerian Stock Exchange (NSE) has announced.

A circular issued on Friday and signed by the Head of Listings Regulation Department of the NSE, Mr Godstime Iwenekhai, stated that the exercise will now stop on Friday, May 1, 2020, instead of the initial date of Wednesday, April 1, 2020.

Consolidated Hallmark Insurance had some weeks ago started the sale of 2,032,500,000 ordinary shares of the company at a unit price of 52 kobo per share.

This was on the basis of one new ordinary share for every four ordinary shares of 50 kobo held by shareholders as at the close of business on February 3, 2020.

But in order to make more investors partake in the exercise, especially due to the disruption caused by the coronavirus pandemic, the company approached the Securities and Exchange Commission (SEC) for an extension, which was eventually granted.

The NSE, which announced the confirmation of the extension, stated in the circular that, “Please refer to our market bulletin of March 10, 2020, notifying the market of the offer period of the rights issue of Consolidated Hallmark Insurance Plc of 2,032,500,000 ordinary shares of N0.50 each at N0.52 per share on the basis of one new ordinary shares for every four ordinary shares held as at the close of business on February 3, 2020.

“Please be informed that the Securities and Exchange Commission (SEC) has approved a further extension of the offer period.

“By the SEC approval, the offer which, was initially scheduled to close on Wednesday, April 1, 2020, will now close on Friday, May 1, 2020.”

Consolidated Hallmark Insurance, along with other companies in the insurance sector in Nigeria, has been asked by the National Insurance Commission (NAICOM) to increase their capital base by December 31, 2020.

This has forced most operators to seek ways to raise fresh capital through rights issue, merger and acquisition and any other means, including private placements.