HomeMoney Markets
Money Markets
Share
Bookmark
Print
Email
Rating
Stella Kilonzo (left) the Chief Executive at the Capital Markets Authority receives the draft Information Memorandum for the proposed CIC Insurance Group Listing at the NSE from Bob Karina, Managing Director of Faida Investment Bank. On the right is Peter Mwaura the Managing Director, CIC Asset Managers, a unit of the CIC Group.
CIC Insurance has set a target of going public by mid this year after handing in to the capital markets regulator its application for listing on the stock market.
The insurance firm’s corporate affairs and communications assistant general manager, Mr Michael Mugo, said yesterday that it is possible to get the Capital Markets Authority (CMA) approval and have its share listed on the Nairobi Securities Exchange by June.
A listing by introduction ordinarily requires less time than selling shares to the public through an initial public offering (IPO).
“We should list by the first-half of this year. Since it is listing by introduction it should not take long,” said Mr Mugo.
Investors will still have to wait for CMA’s approval of the information memorandum to know CIC’s intended listing price.
The share last traded at Sh85 at the over-the-counter at the time of freeze on trading of the stock last Friday.
It is expected to be split at least 20 times as per a shareholder resolution passed last year, meaning it will come to the market at about Sh8.50 each plus a premium or minus a discount affixed by the transaction advisers.
“We will finalise the share price as we get closer to the approval,” said Faida Investment Bank chief executive, Bob Karina.
Faida is the lead transaction adviser for the listing. CIC has closed its shareholders’ register ahead of the planned share split.
“In effect all shareholders in the company’s register by January 27 2012 will qualify and accrue benefits of the split to be executed by the Co-operative Bank Shares Registrars,” said CIC Insurance chief executive, Nelson Kuria, in a statement.
The share will be converted from paper certificates into electronic accounts through share immobilisation to enable their trading in the automated system.
CIC Insurance opted to list by introduction as a persistent bear run at the NSE made the an IPO unviable.
The last two IPOs at the Nairobi bourse, the Co-op Bank and British American offers, ended in under-subscription.
CIC Insurance hopes listing on the NSE would help it tap opportunities for capital growth in light of its pan African expansion plans, while accruing gains for its shareholders. Oraro Company Advocates and Mboya, Wangongu Waiyaki Advocates are acting as the joint legal advisers for the company.
.