Salama rights issue 751% subscribed by final round

Salama Cooperative Insurance Company’s (Salama) rights issue was 751 percent subscribed by the end of its final stage as the firm offered 1.19 million remaining shares and fractional shares to investors at an average price of SAR 14.46.

NCB Capital, the financial advisor, lead manager, and underwriter of the insurer’s rights issue, said in a statement that total proceeds during the round reached SAR 17.21 million, while investor refunds amounted to SAR 5.31 million, or SAR 4.46 a share.

Salama began floating 15 million shares at SAR 10 each to registered shareholders early last month with the aim of raising is capital from SAR 100 million to SAR 250 million.  A second round was held in late July, which was followed by the third and final round on August 2-3.

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.