OUTsurance, a short-term insurance group, on Wednesday listed on the JSE, following the transition and rebrand of Rand Merchant Investment Holdings (RMI).
RMI, the investment holding company that owned OUTsurance, has terminated trading on the JSE and has been replaced by OUTsurance.
In intraday trade yesterday the share was at R28.69, having started the day on R28.55.
OUTsurance Group will hold two subsidiaries: OUTsurance, held 89.3% by OUTsurance Group and 10.7% by OUTsurance management trusts and management minority shareholders.
“The listing of OUTsurance gives shareholders access to an efficient and well capitalised corporate structure, almost solely representing OUTsurance Holdings Limited,” the group said.
It said listing had several benefits for shareholders, including a simpler operational structure offering a single access point to OUTsurance; a cost-effective way to complete an initial public offering; retaining the group’s empowerment credentials and a higher dividend pay-out ratio.
There is to be a phased reduction of the holding company and personnel costs at RMI, until March, 2023 whereafter the only remaining costs would relate to the costs associated with being a listed entity, it said.
Marthinus Visser, OUTsurance Holdings CEO, said: “We are delighted to announce our listing on the JSE which represents a new and exciting chapter in OUTsurance’s history. I am incredibly proud of our team to have reached this milestone and would like to thank RMI/RMB for a brilliant 25-year partnership.
“We have an experienced team with a clear strategy, and we are leveraging our established track record and significant footprint to continue building and returning value to our clients, shareholders, staff, service providers, and communities. We look forward to life ahead as a public company,” Visser said.
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