CMA OKs Al Sagr’s SAR 160M rights issue to raise capital

Logo of Al Sagr Cooperative Insurance Co.

Al Sagr Cooperative Insurance Co. obtained the approval of the Capital Market Authority (CMA) to raise its capital by way of a SAR 160 million rights issue, the capital market regulator said in a statement. 

Eligibility is for the shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the extraordinary general meeting (EGM), which approved the capital hike.

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The offer price and the number of shares on offer will be determined later by Al Sagr by the close of trading on the EGM date and after the application is considered by the CMA according to applicable regulations.

The company will issue the rights issue prospectus later, the statement added.

The CMA's approval of the prospectus should never be considered a recommendation to participate in the offer or invest in the company's shares. It rather means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

In September 2023, Al Sagr’s board of directors increasing the company’s capital to SAR 300 million through a SAR 160 million rights offering. The company got the approval of the Insurance Authority (IA) in December, Argaam reported.