NAIROBI, January Monday 30, 2012 – CIC Insurance Group has submitted its application to the Capital Market Authority (CMA) for approval of its proposed listing at the Nairobi Securities Exchange (NSE). The move marks the beginning of CIC Group’s journey to the stock market where it hopes to launch its shares by introduction.
Today’s presentation follows the suspension of Over The Counter (OTC) trade in CIC shares and official close of the share register, paving way for the share split that was approved at the company’s 33rd AGM in May 2011. “In effect all shareholders in the company’s register by 27th January 2012 will qualify and accrue benefits of the split to be executed by the Co-operative Bank Shares Registrars”, said Nelson Kuria, CIC Group’s Chief Executive.
Subsequently CIC Group will communicate the resultant and necessary immobilisation process to all shareholders. Share immobilisation is the conversion of physical share certificates (traded over the counter) to electronically held share balances that are traded via the Central Depository and settlement Corporation (CDSC).
CIC Group shareholders had early last year resolved to increase the insurer’s share capital to Ksh3 billion from Ksh1.2 billion by creating 90 million ordinary shares. CIC hopes to list at the NSE to tap opportunities for capital growth in light of its pan African expansion plans, while accruing gains in shareholder value.
“This calls on us to be very focussed in our business in the short and long-term to sustain the impressive performance of the company over the last five years”, added Kuria. Faida Investment Bank Ltd is the lead transaction advisor with Oraro & Company Advocates and Mboya, Wangongu & Waiyaki Advocates acting as the J***t legal advisors and Kingdom Securities as the sponsoring stock broker. Deloitte and Touche will act as the reporting accountants and Co-operative Bank of Kenya Limited as share registrars.