Canada Life's 54,000 qualifying policyholders in Ireland are in line to receive free shares worth around €1,714 (£1,350) based on the price at which the life assurance group began trading on the Toronto and Montreal Stock Exchanges yesterday.
As part of its demutualisation and flotation process, Canada Life is offering 26 million shares at 17.50 Canadian dollars (€11.27) to raise a total of Can$455 million.
Conditional trading in the shares began on the grey market yesterday although the official initial public offering (IPO) will not take place until November 4th.
The shares immediately moved higher, touching Can$18.85 at one stage. By close of business in Dublin, they were trading at Can$18.70, a gain of nearly 7 per cent over the issue price.
Less than a third of Canada Life's 180,000 policyholders in Ireland qualified for the free shares but among them were some 30,000 "carpetbaggers" who took out with-profits policies with Canada Life in the first half of last year in anticipation of demutualisation and a windfall gain.
The number of free shares to be issued to Irish policyholders varies widely and depends on a number of factors, including the length of time premiums have been paid and the cash value of the policies.
But all qualifying Irish policyholders should get at least 155 shares, worth an estimated £1,350 at the issue price, although the exact figure will be determined by the Canadian dollar-euro exchange rate and the price on the day they sell. At present, each Canadian dollar is worth €1.55 (£1.97).
A small number of Irish policyholders are in line to get a significant windfall of shares worth a six-figure sum, according to Mr Michael Kiernan, associate director of marketing with the company. Meanwhile, 68 per cent of policyholders opted for cash rather than shares and they will be paid following the IPO next Thursday.
Irish policyholders who opted for shares and wish to sell them can do so through the share service provided by the company, although this will not be available until early December. In addition, shareholders will have to sell their entire holding.
Those who want to sell sooner, or sell only some of their shares, should request a share certificate which the company says will be issued as soon as possible, probably within a week of the IPO. They can then deal through any stockbroker.
Canada Life policyholders with queries should ring Freephone 1800 51 50 51.
