TUNE INSURANCE PLANS TO OFFER UP TO 210 MILLION SHARES
Source: The Star, 16 October 2012
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.