Shareholders of Hungarian-owned CIG Central European Insurance on Wednesday decided to raise capital by €10 million in a private placement, change the company's name to CIG Pannónia Life Insurance and float the company's shares on the Budapest Stock Exchange by the end of 2010, supervisory board chairman Zsigmond Járai said at a press conference on Thursday.
The €10 million share issue will be subscribed by CIG's current owners and investors recommended by them, Járai said. Subscribers will pay 70% of the share price by December 15 and the rest by the end of February. The owners and recommended investors have already said they would buy €16 million of the shares.
The shareholders meeting also decided to convert CIG into a public company and list its shares on the Budapest Stock Exchange by the end of 2010, raising €30 million - €40 million in the IPO, Járai said. If market conditions are good, CIG could issue another, bigger share packet, raising €100 million three years later. CIG's current policy holders would be offered a 20% discount off the share price, he added.
CIG had a 17% share of Hungary's market for unit-linked life insurance products in the third quarter, CEO Béla Horváth said. (MTI-Econews)