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CIG Pannónia to raise capital through share issue on BSE in early November

Hungary's CIG Pannónia Life Insurance Company will float new shares at the Budapest Stock Exchange at the beginning of November after a public offering in October, the business daily Napi Gazdaság reported on Tuesday.

The insurer said in August it will file for a listing of its shares. The newspaper said that CIG will offer between 3.335 million to 10.850 million new shares in the middle of October, with existing shareholders offering 1.950 million of their holdings.

If all shares offered were subscribed the issue could raise shareholders' equity of the insurer from HUF 3.3 billion at the end of June 2010 to over HUF 10 billion, Napi calculated.

The shares which have a nominal value of HUF 40 each will be offered at a price of HUF 938 per share for subscription to retail investors between October 11 and 22. Old clients of the company from 2008-2009 will get a 20% discount, the daily wrote. The shares unsold in the retail subscription will be available to institutional investors at between HUF 600 and HUF 750 through a book-building on October 25, and the final price payable by retail investors will depend on the institutional offering.

CIG Pannónia was set up by Hungarian businessmen, including former central bank governor Zsigmond Járai in 2008 and struck its first contract in the summer of 2008.

The insurer has had operating losses of HUF 4.7 billion to date, including losses of HUF 1.3 billion in H1 this year. Revenue from policies was HUF 12.1 billion last year and was HUF 8.5 billion in H1 2010. CIG Pannónia operates in Hungary, Romania and Slovakia. (MTI-Econews)