Rand Merchant Insurance makes JSE debut
Johannesburg - Rand Merchant Insurance Holdings (RMI), which houses all of RMB Holdings' former insurance divisions under one roof, started trading on the JSE on Monday.
The separate listing is part of RMB's restructuring which has resulted in the creation of separate insurance and banking entities.
RMI Holdings holds a 25% interest in the ordinary shares of health insurance group Discovery Holdings Limited, a 90% interest in the ordinary shares of OUTsurance, a 76% interest in the ordinary shares of RMB-SI (Proprietary) Limited (RMB-SI) and a 24% interest in the ordinary shares of MMI Holdings.
RMI's share price has so far traded between R12.50 and R13.99 per share.
The dilutory effect of the listing saw RMB Holding's share price down 31.32% or R11.90 at noon on Monday. At one stage it was down more than 36% or R13.82.
In an abridged pre-listing statement, RMB Holdings [JSE:RMH] said the two separately listed entry points will provide investors with greater flexibility in investment choices.
"Investors in RMBH will have access to a strategic investment in a premier southern African banking group, owning preeminent banking brands that control significant elements of the profit pools of their segments; while investors in RMI Holdings will have access to a strategic portfolio of insurance investments with significant shares in the profits of various segments of the insurance market," it said.