Trading in the share price of State Insurance Company on the floor of the Ghana Stock Exchange is expected to begin on Friday, January 25, 2008 following the successful initial public offer which was oversubscribed by 40.7 per cent at the close of the three-week.
The offer which commenced on December 3, 2007 ended on December 21, 2007 offer which ended on December 21, 2007.
A statement issued by the GSE said a total of 117,387,000 shares were offered for sale but at the close of the offer period a total of 165,193,460 shares had been subscribed, excluding 19,564,000 shares under the company's employee share ownership plan.
“Therefore, a total of 67,370,906 shares subscribed for under the offer could not be accepted,” the statement said.
It said refunds amounting to GH¢20,211,288 would be made to the applicants through the receiving agents by January 18, 2008.
The statement said all certificates were to be dispatched by the close of business on January 18, 2008. If listed, the SIC would be the second insurance company to be listed on the market, after Enterprise Insurance Company (EIC).
The government offered 50 per cent of its equity stake in the company to the investing public as part of efforts to divest itself from state-owned organisations and also raise funds for its budgetary programmes.
It is also part of the government's efforts at developing the Ghanaian capital market. After the offer period, the SIC is expected to reach a market capitalisation of GH¢58.69 million.
The SIC has seen a massive transformation in recent times, thereby burying the perception that it was a state institution that lacked the needed competitive edge in the world of business.
Today, it stands tall, not only as the country's largest insurance company but also the premium company among insurance firms in the country.
The company has seen the implementation of water-tight management policies which have reflected in its books. Over the period, the company's profitability has been remarkable.
With the recruitment of a strong management team of qualified insurance professionals, the SIC has proved itself to be a force to reckon with in the insurance industry.
This has translated into the company winning the CIMG's Insurance Company of the Year Award for four consecutive times.
Currently, it has a number of subsidiaries, one of which intends to go on the stock market some time next year. This is a sign of what the future holds for the company.
The SIC was incorporated as State Insurance Corporation by an Executive Instrument in 1962 (EI 17) to provide innovative and competitive insurance and other financial services for its clients.