Cic class A shares on offer at ksh 27,is this a gud deal taking into consideration thew won't trade at the Nse.

@ Kalameni, I only own class A shares(12,500) through my sacco. I'm considering adding more at this price of 27.
Will these shares be treated(split) the same way as class B shares except for the longer lock out period after listing?
If so, i presume that it is a good investment,only that the capital gains will be realized(unlocked) in the next 5-7 years or so...
kindly shed some light...
I'm seriously contemplating going stocking up BIG TIME!

>they wil be treated the same except longer lock in period.I expect that they wil be declassified prior to listing as nse doesnt allow more than one class of shares to be listed(this is what happened to Coop bank btw).I had clas B but was tempted to sel them when the price trippled.How can I acquire the class A now?

Meaning you can only get through this two saccos(cic&coop bank) ?Do they issue you with a individual certificate for clas A or they remain under the sacco's name?

Rush on for CIC stock, but is the share overvalued?

Posted Sunday, September 18 2011 THE EAST AFRICAN

CIC INSURANCE’S share price has risen more than threefold since the beginning of the year as investors look forward to a share split that will see them gain 20 new shares for each one currently held.

Currently, the insurer’s shares are trading at US cents 84 per share while in January the shares were trading at US cents 26 on the over the counter (OTC) market.

Also, investors have another reason to be attracted to the stock; CIC plans to list on the Nairobi Stock Exchange in the first quarter of 2012. This will make it easier to trade their shares compared with the OTC market.

There has been a lot of interest in the counter, especially this month, since CIC’s books close at the end of September. Only those on CIC’s register when the books close will be eligible for the new shares when the shares are split.

However, as investors bid up the price in anticipation of the listing and the share split, there is a need for caution.

At a price of US cents 84, the stock is trading at twice its book value — which means investors are paying twice for CIC’s net assets. Other listed insurance firms at the NSE are trading at about 1.5 times their book value, yet they have a track record of consistent earnings.

It will be wise for the investors looking to buy into CIC before the end of September to lower their expectations of the counter. Right, now CIC’s shares look overvalued.