Salama launches second round of rights issue

Salama Cooperative Insurance Co. launched the second round of its rights issue on Sunday and will continue till Tuesday, July 28.

Registered shareholders and those who purchased rights during the first round will be entitled to subscribe to new shares. However, rights cannot be traded during this phase.

Salama is offering 15 million shares at SAR 10 per share to raise its capital from SAR 100 million to SAR 250 million.  The company said earlier that proceeds will be used to boost its solvency margin.

Saudi-based insurers such as Saudi Indian Company For Cooperative Insurance (Wafa Insurance), Arabian Insurance Cooperative Co. (AICC), United Cooperative Assurance (UCA) and Al Alamiya Cooperative Insurance Co. (Al Alamiya) have recently raised capital through rights issues in an attempt to offset accumulated losses, according to data compiled by Argaam.