Alinma Tokio Marine details use of right issue proceeds

Alinma Tokio Marine Co. said it has invested SAR 222 million out of the SAR 250 million generated from its rights issue in short-term Murabaha deposits, real estate fund, sukuk and liquidity fund.

As direct and indirect costs related to the rights issue amounted to SAR 2.8 million, the net proceeds were SAR 247 million, the company said in a statement to Tadawul on Monday.

An amount of SAR 25 million has been placed as statutory deposit consequent to the capital increase.

Due to better negotiation with third parties and control over expenses, the company was able to save SAR 1.1 million in the transaction cost of the capital increase, which was originally estimated at SAR 4 million in the prospectus.

This saving was invested in the short-term Murabaha deposits.

An amount of SAR 33.5 million was transferred to the policyholders’ funds to finance the deficit for the period, while SAR 6.2 million is available in the shareholders’ current account.

While, the estimated amount of investment in medium to long-term category as disclosed in the prospectus was SAR 77.3 million, only SAR 24.5 million was invested in this category which represents investments in sukuks and real estate fund. The company is still considering additional investments.

Out of the SAR 52.9 million that formed part of the medium to long-term investment category, SAR 13.2 million has been invested in commodity funds.