CHI gets shareholders’ nod to raise N734.5m additional capital

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Consolidated Hallmark Insurance (CHI) Plc, has received its shareholders’ approval to raise N734.5million additional capital through private placement.

The shareholders gave the nod to the Board of Directors at the company’s Extraordinary General Meeting (EGM) called in Lagos for additional capital through private placement of 1,130,000,000 units at the price of 65 Kobo per share. This will bring N734.5 million to the coffers of the company.

Its Chairman, Mr. Obinna Ekezie also sought 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 15billion through the creation of an additional five billion units, a request that was equally approved.

With this, the firm’s Share Capital  will be increased from N5billion to N7.5billion.

Ekezie said this was next in the series of the Board’s and Management’s proactive efforts  to boost the firm’s working capital and adequately position it as a leading player in the underwriting of big ticket insurance transactions, having successfully raised N500 million through the Rights Issue to existing shareholders of 1,000,000,000 units that was 108 per cent subscribed to during the last quarter of 2017, but concluded in the first quarter of this year.

The firm’s Managing Director ,  who is also the current president of the Chartered Insurance Institute of Nigeria (CIIN), Eddie Efekoha, said since insurance business is about capital, the raising of additional capital would allow the insurer to take more big ticket insurance transactions, thereby, increasing the profit portfolio of the company, as well as give good returns on investments to shareholders.

Efekoha added that the future plans of the firm includes 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 while delighting its existing corporate customers.


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