MedGulf issues SAR 400 mln rights issue prospectus

The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) has posted the prospectus of its SAR 400 million rights issue, the insurer said in a bourse filing.

MedGulf set the offering price at SAR 10 a share, to increase capital from SAR 400 million to SAR 800 million, through floating 40 million shares.

The capital increase is aimed at improving solvency and enhancing the company’s financial position.

The increase will be limited to shareholders of record on the second trading day following the extraordinary general meeting.

In mid-August, Saudi Capital Market Authority (CMA) approved MedGulf’s request to increase capital by SAR 400 million through a rights issue. The insurer’s shareholders on September 10 will discuss and approve the capital increase.

In December 2016, MedGulf’s board of directors recommended a capital hike through a SAR 400 million rights issue, according to data available on Argaam.