CFC Insurance shares rise 127 per cent on debut
Posted Thursday, April 21 2011 at 12:06
FC Insurance Holdings (CIH) shares on Thursday began trading on the Nairobi Stock Exchange (NSE) at Sh6.528 per share.
Later, the shares traded between Sh15 and Sh20 during the day and closed at Sh14.80.
CIH is comprised of Heritage Insurance and CFC Life, both of which were previously units of CFC Stanbic Holdings.
Traders told Business Daily say there was low supply as investors measure at what price the shares will trade at in the next few days.
The insurer becomes the second company after Equity Bank in August 2006 to get listing at the exchange through introduction, which allows shares to be listed and traded in the bourse without raising capital through an initial public offering (IPO).
Capital Marketing Authority chief executive Stella Kilonzo said that granting approval for listing through introduction, CFC Insurance Holdings was subjected to exactly same stringent listing criteria as it would have gone through if it was raising capital from the public.
“The fact that there was no capital raising involved did not in any way confer eligibility concessions to the company,” she said.
CFC Insurance becomes fourth insurance company to be listed after Kenya Reinsurance, Pan African Insurance Holding and Jubilee Insurance companies.
CFC Insurance Holdings chairman Jeremiah Kiereini said the company seeks to drive innovation in products to become more responsive to market needs as banking and mobile telecommunications.
“We can achieve this by focusing the many talented minds we have in Kenya on non-traditional modes of distribution to make our products more affordable to Kenyans,” he said. “This can also be achieved by being more efficient in the way we distribute our products by ensuring that this benefit is then be passed on to the customer.”