Kurnia Group
Kurnia Asia Berhad Launches Prospectus In Conjunction With Listing On Bursa
Malaysia
December 30th, 2004
Kuala Lumpur, Thursday - Kurnia Asia Berhad (KAB) launched its prospectus
today in conjunction with its listing on the Main Board of Bursa Malaysia Securities
Berhad (BMSB). KAB is the holding company which wholly owns Kurnia Insurans
(M) Berhad (KIMB).
KIMB is the largest general insurer in Malaysia and South East Asia, and the
first to record a gross premium in excess of RM 1 billion. The company has
been growing rapidly since its inception in 1991. In figures released in the
prospectus, KAB has forecasted to achieve RM 1.155 billion in gross premium
for the financial year ending 30 June 2005.
"We have mapped out an exciting strategic direction moving forward that will
see Kurnia gaining more momentum, and we are confident of remaining strong
on our business growth," said Dato' Adrian Loh, Executive Director of KAB. "This
will be achieved through greater allocation of management attention and resources
to the non-motor business especially in personal lines such as medical, fire,
houseowners and householders."
"We will continue to strengthen our leadership position through innovative
services such as KAA and KE." added Dato' Adrian Loh. Kurnia Auto Assist (KAA)
is a free 24-hour roadside assistance service while Kurnia Express (KE) is
an immediate cash settlement for motor own-damage claims. Kurnia will also
continue to introduce new products. For example, Kurnia recently launched 2
new medical products - MediGuard and MediGuard Express. Furthermore, the company
will maintain and enhance its close partnership with its extensive network
of 7,800 agents to market its existing and new products.
Kurnia provides a full range of general insurance products including motor,
fire, personal accident, marine, medical, engineering, workmen's compensation
and miscellaneous classes of insurance. The company controls 13.4% of the local
general insurance market and 22.6% of the local motor insurance market.
As at 30 June 2004, KIMB has a paid-up capital of RM200 million and total
assets exceeding RM 1.6 billion. Its financial strength rating was upgraded
in March 2004 by Malaysia Rating Corporation (MARC) to "A+". Prior to that,
it had been accorded "A" rating for four consecutive years since 1999.
The Initial Public Offering (IPO) targeted for end of next month is the largest
by a general insurer in Malaysia. KAB will be making an Offer For Sale of 543
million shares of RM0.25 each to institutional and retail investors. 42,500,000
shares have been allocated for institutional investors, and 500,500,000 shares
for the Malaysian public, directors, agents and staff of the company, and bumiputera
investors. At present the retail price has been set at RM1.00 per ordinary
share or 5% discount to the institutional price, whichever is the lower. The
institutional price will be determined by way of a book building exercise.
Apart from conventional methods of share application, KAB shares will also
be available for subscription via the Internet. This will be the first time
retail investors can apply for shares from the convenience of home. This innovative
service is provided by CIMB Securities through CIMB e-IPO.