Salama kicks off first stage of SAR 150 mln rights issue

Salama Cooperative Insurance Company launched the first stage of its rights issue on Monday, which is set to continue until July 15.

The insurer is offering 15 million shares at SAR 10 per share to raise its capital from SAR 100 million to SAR 250 million.

During this stage, each registered shareholder can subscribe to 1.5 new shares.

The company said it will dedicate SAR 8 million for fees, while the rest of the proceeds will be used to boost its solvency margin.

Rights can also be traded by shareholders or investors during this stage.

Saudi-based insurers such as Wafa, AICC, United Assurance, and Al-Alamaiya have recently raised their capitals through rights issues in an attempt to offset accumulated losses, according to data compiled by Argaam.

Price Limits
SAR 17.13	Closing price per share
± 10%	Price fluctuation limit
± SAR 1.7 (18.80-15.35)	Daily price limit per share
SAR 10	Offering price
SAR 7.13	Indicated value at closing

Capital Increase Details
SAR 100 mln	Current capital
10 mln	Current shares
150%	Percentage of increase
SAR 250 mln	Resulting capital
The Rights Issue
15 mln	Number of new shares
SAR 10	Price per share (new)
SAR 150 mln	Size of issue
June 30, 2015	Record date
Other Details
NCB Capital	Financial advisor & Lead manager
NCB Capital	Lead Underwriter
NCB, Al-Rajhi, SAMBA, RIBL, Saudi Fransi	Receiving banks

" Salama's IPO "

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