Salama issues prospectus for rights offering

Logo of Salama Cooperative Insurance Co.

Salama Cooperative Insurance Co. announced today, Oct. 6, the prospectus for its capital increase through a SAR 100 million rights offering.

It plans to offer 10 million shares at SAR 10 each, raising capital by 50% from SAR 200 million to SAR 300 million.

For More IPOs

The company aims to use the proceeds to support future plans, strengthen its solvency margin, meet minimum capital requirements, and increase the statutory deposit.

Shareholders will vote on the board’s recommendation to increase capital during the extraordinary general meeting (EGM) to be held on Oct. 24.

The Capital Market Authority (CMA) approved late last month Salama’s request to top-up capital through a rights issue.

Capital Increase Details
Current Capital	SAR 200 mln
Number of Shares	20 mln
Capital Hike (%)	50%
New Capital	SAR 300 mln
New Number of Shares	30 mln

Rights Issue Details
Offered Shares	10 mln
Offer Price	SAR 10
Issue Size	SAR 100 mln
Eligibility Ratio	1 right per each two existing shares
Proceeds (SAR mln)	Bank deposits	87.5
	Statutory deposit increase	7.5
	Offering costs	5

Additional Information
Financial Advisor, Lead Manager & Underwriter	Alawwal Capital
Co-Underwriter	Al-Nefaie Investment

Issues Prospectus

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