HMARKINS Records 15% Gains After Announcing Plans To Hold An EGM Over Fresh Capital Raising Plan

Proshare

Tuesday, November 27, 2018 / 01:10 PM / Proshare Research 

 

The shares of Consolidated Hallmark Insurance Plc have risen by 15.15 percent between November 5th, 2018 when the underwriting firm notified the public via the Nigerian Stock Exchange (NSE) of its plan to raise fresh capital and November 26th, 2018. 

It would be recalled that HMARKINS had on Monday, November 5, 2018 sent a notice to the NSE indicating its intention to hold an Extraordinary General Meeting (EGM) on Wednesday, November 28, 2018 in Lagos to seek necessary approval to increase its share capital and also allot shares through private placement. 

Although, the share price of HMARKINS remained flat at 33 kobo per share from November 6, 2018 to November 16, 2018. It however rose by 6.06 percent to 35 kobo per share on Monday, November 19, 2018. 

HMARKINS continued with its bullish trend, rising further to reach 38 kobo at the close of trading on Friday, November 23, 2018, indicating the share price appreciated by 15.15 percent or 5 kobo since the insurance firm publicly disclosed its plans to list 1,130,000,000 units of shares through private placement at 65 Kobo per share. 

The stock had remained inactive at 50 kobo per share since August 2009 until February 2, 2018 when it closed at 48 kobo per share after the NSE reviewed its nominal value benchmark for quoted companies from 50 kobo to 1 kobo. 

As at Monday, November 26, 2018, the company’s outstanding shares stood at 7 billion units, while its market capitalisation was N2.66 billion.

 

Table 1: Performance of Consolidated Hallmark on NSE

Date

Share Price

% Change

6-Nov-18

0.33

 

7-Nov-18

0.33

0.00%

8-Nov-18

0.33

0.00%

9-Nov-18

0.33

0.00%

12-Nov-18

0.33

0.00%

13-Nov-18

0.33

0.00%

14-Nov-18

0.33

0.00%

15-Nov-18

0.33

0.00%

16-Nov-18

0.33

0.00%

19-Nov-18

0.35

6.06%

20-Nov-18

0.35

0.00%

21-Nov-18

0.38

8.57%

22-Nov-18

0.38

0.00%

23-Nov-18

0.38

0.00%

26-Nov-18

0.38

0.00%

Source: NSE, Proshare Research

 

Chart 1: Performance of Consolidated Hallmark Insurance’s Shares on NSE

Proshare Nigeria Pvt. Ltd.

Source: NSE, Proshare Research

 

A cursory review of HMARKINS ‘s results showed that at the end of the first nine months of 2018, the company’s gross premium written grew by 19.66 percent to N5.4 billion compared to N4.52 billion recorded in the corresponding period in 2017. 

During the same period, HMARKINS ‘s profit before tax increased by 17.25 percent to N422.34 million, while it declared N355.92 million post-tax profit in the same period. 

This indicates that the company strongly sustained its profitability by recording an increase of 71.23 percent for the nine months ended September 2018 compared to the same period in 2017.


Table 2: Financial Performance of Consolidated Hallmark

Proshare Nigeria Pvt. Ltd.

Source: NSE, Proshare Research


Proshare Nigeria Pvt. Ltd.


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