TUNE IN­SURANCE PLANS TO OF­FER UP TO 210 MIL­LION SHARES

Source: The Star, 16 Oc­to­ber 2012

Insurance - - COMPANY CORNER -

Tune In­surance Malaysia Bhd, the in­surance arm of Tune group, is ex­pected to of­fer up to 210.22 mil­lion shares for its pro­posed ini­tial pub­lic of­fer­ing (IPO). The shares to be of­fered com­prise 143.37 mil­lion new shares and 66.85 mil­lion ex­ist­ing shares.

Its big­gest share­holder Tune Money Sdn Bhd plans to of­fer the 66.85 mil­lion or 8.89% of Tune In­surance shares un­der the list­ing ex­er­cise which will see its 80% di­rect stake re­duced to 55.85%. As a re­sult of the is­suance or new shares, AirAsia Bhd’s 20% di­rect stake in the no-frills in­surance com­pany will shrink to 16.19%.

Tune group co-founder and AirAsia Bhd group CEO Tan Sri Tony Fer­nan­des also re­vealed three planned IPOs in the pipe­line – Tune In­surance, AirAsiaX Sdn Bhd and AirAsia In­done­sia. The in­surance unit, the first of the three to be listed, is ex­pected to have a mar­ket cap­i­tal­i­sa­tion of close to RM800mil.

Tune Group ac­quired about 80% of eq­uity in Maika Hold­ings Bhd’s gen­eral in­surance unit, Ori­en­tal As­sur­ance Bhd, and re­named it as Tune In­surance. Post ac­qui­si­tion, it could un­der­write gen­eral in­surance poli­cies di­rectly in Malaysia, and of­fer a broader range of in­surance prod­ucts.

The com­pany is ac­tively pur­su­ing ac­qui­si­tion tar­gets in other South-East Asian mar­kets, specif­i­cally In­done­sia and Thai­land, to en­able them to own gen­eral in­sur­ers in th­ese mar­kets and of­fer prod­ucts through other chan­nels to th­ese fast grow­ing and size­able mar­kets whose in­surance needs are un­der­served.

Its on­line in­surance busi­ness is mainly Travel Pro­tec­tion Plan poli­cies pro­vided for AirAsia cus­tomers. Mov­ing for­ward, it plans to lever­age on AirAsia and Tune Ho­tels’ distri­bu­tion chan­nels to grow its busi­ness.

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