CIC Insurance is set to list over 2 billion shares at the NSE today. The float will be traded at a listing price of Ksh3.50. The company is listing by introduction in a bid to offload some of its shares. Only 25.7% of the shares will be available for trading. The Co-operative Insurance Society, which holds the remaining 74.3%, will not be trading for a 5-year lock in period to boost confidence in new investors.

 The move will position the insurer for growth. One of the benefits of listing by introduction is that it unlocks value for shareholders. It also enhances their position for raising debt or equity from the Capital Markets. Samuel Wachira, General Manager at Francis Drummond and Co Ltd said, “The listing increases levels of transparency, service delivery and corporate governance, which makes the firm competitive in the industry.”

CIC, Africa’s largest co-operative insurer, recently made a Ksh1 billion investment in Nairobi’s housing market. The company had made plans to set up an office block in the city. Research analysts at NIC said that the investment will not have any effect on today’s listing.

In 2011, the company’s directors recommended a payment of a first and final dividend of Ksh1.80 per share on all allocated shares. This was up 12.5% from the previous year.