Logo of Saudi Reinsurance Co.’s (Saudi Re)
Saudi Reinsurance Co. (Saudi Re) released the prospectus for its capital increase, with the suspension of preemptive rights.
The Public Investment Fund (PIF) will fully subscribe to the new shares, acquiring a 23.08% stake in the company’s capital post-increase.
The board sees the capital increase as a way to support local growth opportunities, strengthen the capital base and solvency, and maintain the credit rating.
The extraordinary general meeting (EGM) is set for Dec. 24 to vote on the issuance of 26.73 million new ordinary shares with suspended preemptive rights.
The Capital Market Authority (CMA) approved in November the request received from Saudi Re to increase capital through a rights issue, as per Argaam's data.
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Capital Hike Details |
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Current Capital |
SAR 891 mln |
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Number of Shares |
89.1 mln |
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Capital Increase (%) |
30% |
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New Capital |
SAR 1.15 bln |
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Number of Shares after Increase |
115.83 mln |
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Reason |
Support growth and strengthen finances |
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Objective |
Full subscription by PIF for 23.08% ownership |
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Eligibility Date |
Dec. 24, 2024. |
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Rights Issue Details |
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Offered Shares |
SAR 26.73 mln |
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Offering Price |
SAR 16 |
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Total Offering Value |
SAR 427.68 mln |
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Type |
Additional shares issued without preemptive rights for current shareholders |
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Dividend Entitlement |
Targeted investor will receive dividends declared after subscription |
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Shareholders’ Ownership Dilution |
23.08% |
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New Shares as % of Capital (pre-increase) |
30% |
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New Shares as % of Capital (post-increase) |
23.8% |
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Target Investor |
PIF |
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Proceeds |
Increasing the statutory deposit |
26.73 |
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Financial Investments |
392.5 |
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Net Proceeds |
418.98 |
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Additional Information |
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Financial Advisor, Underwriter |
Al Rajhi Capital |
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