Buruj Insurance to launch SAR 120 mln rights issue

Buruj Cooperative Insurance Co. said on Wednesday it will launch a rights issue from April 7 through 21 to increase its capital from SAR 130 million to SAR 250 million.

The insurer said the offering is lead-managed and advised by Falcom Financial Services.  Receiving banks are NCB, Riyad Bank, Saudi Fransi, Samba, and Falcom, according to data available on Argaam.

A total of 12 million shares will be offered at SAR 10 per share to shareholders of record and the public on April 7.

The initial subscription round will begin April 7, and last until April 16. Rights holders will be entitled to subscribe wholly or partially to new shares up to the rights deposited with their portfolios. Rights could also be traded by shareholders or investors in this stage. 

The second round of the offering will run from April 19 to 21. All rights holders, whether registered shareholders or purchasers of rights in the first round, will be entitled to subscribe for new shares. Rights are untradeable in this phase.

Eligible shareholders will subscribe for one right for every 1.083 share held.

Buruj will dedicate SAR 5 million for fees, while the remaining proceeds will be used to boost its solvency margin.