SIC Insurance Company commences trading on GSE

Accra, Jan. 25, GNA - State Insurance Company Limited, now SIC Insurance Company, on Friday officially listed and commenced trading on the Ghana Stock Exchange (GSE) with shareholder-subscriber base of 13,300.

The company's offer, which sought to raise GH=A235.2 million, comprising 60 percent of government holding, was oversubscribed by 89 percent, compelling Government to off-load an additional 10 percent of its stake.

Of the GH=A235.2 million, GH=A229.3 million was raised from the public outside the company and the rest GH=A25.9 million from employees under an Employee Share Ownership Plan (ESOP). Speaking at the listing, Dr Anthony Akoto-Osei, Minister of State, Finance and Economic Planning, said Government would not hesitate to offload more shares in the company if SIC Insurance Company improves upon its performance.

"If you increased your shareholder-base, government will also be interested in offloading more of its shares." Dr Akoto-Osei also urged the GSE to continue to improve upon its operations and make the Exchange very attractive to attract new and young companies to list as well as boost investors' confidence in listed equities.

Mr Kofi Yamoah, Managing Director of the GSE, said as the largest Insurance Company in the country, the listing of SIC would create the opportunity for investment in viable businesses and lead to wealth creation.

He said the Exchange wanted to see companies list and expand to offer more jobs for the youth, contribute greater taxes and social projects for local communities, as well as share their fortunes and risks with their shareholders and position themselves competitively for the coming oil age where Ghana would be an oil producing economy. "A capital market in a developing economy like Ghana is only relevant if Government and private sector deliberately put as many of its business on the market for greater growth and expansion with the consequent benefits."

Mr Peter Osei Duah, Managing Director of SIC, said the company could not afford to fail Government because it had taken several years to go public hence it would work conscientiously to continue its growth. He said with the discovery of oil, the new SIC would position itself to make the maximum benefit from it but urged government to ensure that Ghanaian businesses were not crowded-out when it took off. "Government needs to ensure that rules and regulations that would be put in place for the oil business allow Ghanaian companies to also benefit," Mr Duah said. He said it was important to expedite action on the attainment of a common currency by the West African Monetary Union because it would help businesses within and across countries in the sub-region to thrive. 25 Jan 08