The Capital Markets Authority has approved CIC Africa Insurance (Uganda) Ltd’s share offering to cooperatives and saccos, according to a statement released by the regulator.
The insurer is seeking to raise Shs7.25 billion in a public offering that will run to 14 April, 2017. It is offering 724,900 ordinary shares at Shs10,000 per share to Ugandan saccos and cooperatives. The minimum amount of shares that can be acquired in the offering is 100.
“The Authority received the final prospectus dated 13th October, 2016 and granted approval following the fulfilment of the prospectus requirements stipulated in the CMA Act as amended,” the statement says.
The shares “will not be listed on any stock exchange once the offer has closed,” according to the CMA statement. “The shares will only be transferred in line with CIC Africa (Uganda) Limited’s Articles of Association, which may be obtained at the company’s registered offices or at the Registrar General’s office.”
The shares will give Ugandan cooperatives and saccos a 49% shareholding in the insurer. A company representative told Uganda Business News when the offer was initially announced that the shares will pay an annual dividend.
The Nairobi-listed insurer has a long history of specialising in products targeted to cooperative associations and saccos.