Walaa rights issue 707% oversubscribed in second round

The second round of Saudi United Cooperative Insurance Co.’s (Walaa Insurance) rights issue was 707.4 percent oversubscribed, as institutional investors bought 3.7 million remaining shares, individually priced at SAR 14.85, Aljazira Capital, the lead manager  and financial underwriter in the offering, said in a statement.

Proceeds from the sale of rump and fractional shares neared SAR 55 million, while refunds to owners of priority rights and fractional shares netted SAR 10.55 million or SAR 2.85 per share.  

Argaam recently reported on Walaa’s offering of 20 million shares at a price of SAR 12 per share, which aimed to double its capital to SAR 400 million. Registered shareholders were entitled to buy the new shares on April 27.

Walaa Insurance IPO