Consolidated Hallmark seeks approval to list N2bn rights issue

Consolidated Hallmark Insurance Plc has through its Stockbroker, Planet Capital Limited, submitted an application to The Nigerian Stock Exchange for the approval and listing of a Rights Issue of N2bn.

The rights issue is of Two Billion, Thirty-Two Million, Five Hundred Thousand, (2,032,500,000) ordinary shares of Fifty Kobo (N0.50) each at Fifty-two Kobo (N0.52) per share, on the basis of one (1) new share for every four (4) ordinary shares held.

In a notification sent to dealing members of the stock market, the NSE disclosed that the Qualification Date for the rights issue was scheduled today Monday, February 3, 2020.

Recall that in November 2019, the insurance firm secured approval of its shareholders to raise additional capital of N4.5bn through a rights issue.

It is believed that this action is consequent upon the recapitalisation exercise of the National Insurance Commission (NAICOM) which is expected to boost the insurance industry.

Recall that all through last year, the National Insurance Commission proposed an increment of the capital base for all insurance firms.

Life insurance underwriting firms were mandated to shore up their capital base from N2 billion to N8 billion. Insurance firms underwriting general business were mandated to shore up their capital from N3 billion to N10 billion. Composite insurance firms were asked to raise their capital from N5 billion to N18 billion while Reinsurance firms moved their current minimum capital of N10 billion to N20 billion.