CIC Insurance floats 2.2 billion shares Wednesday
Posted Tuesday, July 17 2012 at 18:05
CIC Insurance will on Wednesday become the second company to list on the Nairobi Securities Exchange (NSE) this year when it floats 2.2 billion shares in the morning.
Despite high interest rates and the political uncertainty, companies have said that they will still list with Bank of Africa (BoA) being the latest to be reported being interested in seeking a public listing.
Unconfirmed reports also say BoA, which has operations across sub-Saharan Africa and is based in Mali, will sell part of its shareholding through the NSE, a decision made by Banque Marocaine du Commerce Exterieur.
“The decision to seek public listing follows new conditions by the group’s new majority shareholder. Last year, Banque Marocaine du Commerce Exterieur which is the second largest banking group in Morocco acquired about 60 per cent of BOA group,” said a weekly report by Standard Investment Bank. The bank’s CEO was said to be on leave and unavailable for comment.
Other main shareholders of the BoA are PROPARCO, a division of the French Development Agency and Netherlands Development Finance Company.
Diamond Trust Bank has kicked off a rights issue intended to raise Sh1.8 billion for expansion plan and grow its assets, the third rights issue for the bank since 2007.
Consolidated Bank has gone to the NSE seeking to raise Sh4 billion through a medium- term note.
In addition to just seeking money for expansion, the new Central Bank of Kenya (CBK) rules meant to strengthen commercial banks are likely to see listed banks raise money through rights issues and debt.
CIC Insurance will float the shares by introduction at Sh3.50, but only a quarter or 560 million shares will be available for trading.
Co-operative Insurance Society Limited, which has a 75 per cent stake in CIC Insurance, will not offload shares for five years. Directors and senior management will also not offload 35 per cent of their shareholding for a two-year period.
CIC’s listing comes after Longhorn Kenya, which listed by introduction in May. Besides banks, clothing retailer Deacons is seeking to list on the bourse by the end of the year.