Britam closed the day at Sh12.60 after opening the first trading session of 2017 at Sh10 per share, making it the best performer of the day.
It was trading without the usual 10 per cent share price movement limit, due to the material announcement of the IFC deal.
Britam’s share gained 26 per cent Tuesday on the back of news that the International Finance Corporation (IFC) is set to take up a 10.37 per cent stake in the insurer in a Sh3.5 billion deal.
Britam closed the day at Sh12.60 after opening the first trading session of 2017 at Sh10 per share, making it the best performer of the day.
It was trading without the usual 10 per cent share price movement limit, due to the material announcement of the IFC deal.
Investors’ attention would have been attracted Tuesday to the fact that IFC—which is the World Bank’s private investment arm— is willing to pay a premium to get its hands on 224.1 million shares in Britam, for which it is paying Sh15.85 apiece.
Undervalued
This signals that the stock may be undervalued at the prevailing market price, which is likely to be the case for many counters given the dip in prices in the prevailing bear run.
Britam’s gain was a significant factor in pushing the NSE 20 share index higher by 20 points Tuesday to 3206 points, its highest level in one month.
The market opened year with a total of 17.5 million shares traded compared to 10 million on Friday, with turnover coming in at Sh362 million compared to Sh358 million posted on Friday.
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