The shares Africa Insurance Company S.C. floated witnessed a bid that is 57 percent higher than the price the company set.

In average the new shares that were floated for the public got a response that is on average 35 percent higher.

The initial price for one share was 1,000 Birr. Africa officially disclosed one individual offered a price that is 57 percent than this initial price.

Commenting on this the Insurance firm’s CEO, Kiros Jiranie, noted; “There were several people offering high bids to own a share of the insurance firm”. According to him most bidders offered a price that is between 25 and 40 percent higher than the initial price.

57 bidders participated in the bid, out of which the lowest offer was 1,100 Birr per share.

The total amount of offer made by the 57 bidders was 70 Million Birr, Kiros explained. Nonetheless, his company floated a bid for 30 Million Birr worth of ordinary 30,000 shares.

The CEO furthered some bidders offered to buy the maximum share that an individual is permitted to own; five percent.

According to Capital, the financial sector has been alluring for its high margin of profit per share. The financial institutions are said to have registered from 30 percent to 50 percent profit per share based on recent experiences.

A year ago Africa decided to increase its subscribed capital from 60 Million Birr to 180 Million Birr, which it aims to attain the current fiscal year.

Kiros noted the Board of Directors will endorse the final approval of the proposal submitted by the Board’s subcommittee in the coming week.

He furthered, “Based on the past year’s general assembly agreement we will only accept 30 Million Birr worth of shares”.

The reason behind Africa’s floating shares was to expand the number of shareholders and to meet the growing capital volume target.

Source: Capital