General Accident IPO oversubscribed

The initial public offer of General Accident Insurance Company was oversubscribed in a minute of being open to the market this week.

Mayberry Investments Limited, lead broker in the general insurer admission to the Junior Stock Exchange (JSE), advised that investors applied for in excess of $1 billion worth of the stock.

General Accident, which has been in operation since 1981, had initially hope to raise $400 million to $425 million of equity.

General Accident said the funds raised would be used to strengthen regulatory capital and finance growth plans.

It will now become the 12th company to be listed on the JSE Junior market.

General Accident, whose sole shareholder is Musson Jamaica Limited, writes non-life and non-health classes of business which includes motor, property among others.

Prior to the close of the offer, at least one investment company had recommended the stock as a buy.

"Given the intent of the company to invest more moving forward, in addition to its commitment to maintaining prudent risk-management principles, we see General Accident Insurance Company as a buy that could offer excellent value for investors over the long term," said Roy S. Reid, manager, client portfolios and investment strategies at Jamaica Money Market Brokers.