Morgan and Byrne & Sons is set to take a substantial stake in Hiscox Dedicated, the limited liability vehicle which is a corporate member of Lloyd's, supporting four Hiscox syndicates at Lloyd's.

In a major strategy change, Hiscox Dedicated, which is part of the Hiscox Group chaired by Lloyd's deputy chairman, Mr. Robert Hiscox, who was in Bermuda a fortnight ago, has unveiled a fully underwritten share issue.

The company has abandoned its plans for an early London listing, according to an article in Lloyd's List.

The placing and open offer will raise $43.6 million.

Trident, a Cayman Island investor since November, is expecting to take a $14.6 million placing and is fully underwriting the $29 million open offer to qualifying shareholders and warrant holders.

More than 24 million partly paid shares at 110 pence each will be issued, a 9:5 ratio to existing shares and warrants.

Depending on the take up of the share offer, Lloyd's said, Trident will own between 34.28 percent and 68.35 percent of the Lloyd's vehicle.

Hiscox Dedicated will still seek a London listing, although not for years, after it was determined that the new move would achieve the company objective to become an international Lloyd's insurance company more quickly than would a London listing.

Half of the $43.6 million is expected to be paid before the November 30 deadline for declaring participation at Lloyd's in 1995, with a balance payable at the end of October 1995.

Hiscox Dedicated currently owns 4.5 to 5.2 percent of each of syndicates 33,624, 52 and 625. The percentage holdings will more than double to over 11 percent, but rough parity in the percentage holdings in the four will remain.

The company also announced that it will acquire 25 percent of managing agent, Hiscox Syndicates, which manages the four syndicates and takes the underwriting decisions for $18 million.