Consolidated Hallmark Insurance Seeks Approval to List Rights Issue

By Dipo Olowookere

One of the players in the insurance sector, Consolidated Hallmark Insurance Plc, has filed an application to list its proposed rights issue on the platform of the Nigerian Stock Exchange (NSE).

The insurer submitted this application to the stock exchange recently through its stockbroker, Planet Capital Limited, a notice from the NSE disclosed.

In the disclosure signed by the Head of Listings Regulation at the nation’s stock exchange, Mr Godstime Iwenekhai, it was stated that the qualification date for the rights issue was Monday, February 3, 2020.

Consolidated Hallmark Insurance has proposed to sell to its existing shareholders a total of 2.033 billion ordinary shares of 50 kobo each at 52 kobo per share, on the basis of one new share for every 4 ordinary shares held by the company’s investors.

Business Post reports that last November, shareholders of the firm approved the request by the board to raise about N5.6 billion, comprising N1.057 billion through rights issue and N4.500 billion through another means.

The board was then authorised to begin “discussion on possible mergers and acquisition as the directors deem fit, subject to obtaining the approvals of relevant regulatory authorities.”

At an Extraordinary General Meeting (EGM) held in Lagos, the shareholders said the board was free “to raise additional capital of up to N1.057 billion through a rights issue of 2,032,500,000 units to the ratio of 1:4 at 52 kobo per share, on such terms and conditions and on such dates as may be determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.”

At the EGM, the investors said the board was at liberty to create additional 5 billion ordinary shares of 50 kobo each of the company by increasing the authorised share capital to N10 billion divided into 20 billion ordinary shares of 50 kobo from N7.5 billion divided into 15 billion ordinary shares of 50 kobo each.

Business Post reports that as at the close of transactions on the exchange on Monday, share price of Consolidated Hallmark Insurance went down by one kobo or 2.78 percent to 35 kobo per unit from 36 kobo per unit it traded last Friday.