CIC Africa Limited is seeking to raise Sh7.2billion to recapitalise the company’s subsidiaries and fund its expansion. The company plans to raise the funds through sale of 49 % stake to Uganda based co-operatives unions and savings and credit cooperative Societies.
Launching the offer on Oct 17, the firm’s chairperson Yasin Abubaker Nnume said the company has offered 7.249 million ordinary shares for subscription, each priced at Shs10, 000. The sale of shares will close on April 14th 2017.
“The company does not intend to list on the Uganda Securities Exchange or any other securities exchange after the offer of the shares to the cooperatives but will provide and exit strategy to shareholders should they opt to sell their shares in future in accordance with the company’s Articles of Association,” Nnume said.
He said the CIC Insurance in Uganda is aimed at lifting the burden of self-insurance from cooperative societies across the country.
Ibrahim Kaddunabi Lubega, the chief executive officer at the Insurance Regulatory Authority of Uganda said the company’s new development will boost insurance penetration countrywide.
CIC Insurance Group, then CIS, started as an insurance agency within the Kenya National Federation of Co-operatives (KNFC) in 1968.
It comprises of three subsidiaries and an associate company namely CIC Life Assurance, CIC General Insurance Ltd, CIC Asset Management Ltd and Takaful Insurance of Africa Ltd, respectively. The Company was listed at the Nairobi Securities Exchange.