Logo of Salama Cooperative Insurance Co.
Salama Cooperative Insurance Co.’s rights issue trading and subscription to the new shares began today, Dec. 17, according to a statement to Tadawul.
Rights trading will end on Dec. 24, while subscription to new shares will close on Dec. 29.
The insurer intends to offer 10 million shares, at SAR 10 each, via a SAR 100 million rights issue to increase capital by 50% from SAR 200 million to SAR 300 million.
The capital increase will help support the insurer’s future plans, enhance financial solvency margin, boost statutory reserve, and fulfill the requirements of capital.
The Capital Market Authority (CMA) approved in September the company’s request to increase capital via a rights issue.
Salama shareholders recently approved the board’s recommendation to raise capital by SAR 100 million rights issue (one share for every two existing shares).
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Capital Increase Details |
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Current capital |
SAR 200 mln |
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Current number of shares |
20 mln |
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Capital increase (%) |
50% |
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Capital after increase |
SAR 300 mln |
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Number of shares after increase |
30 mln |
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Rights Issue Details |
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Offered Shares |
10 mln |
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Offer Price |
SAR 10 |
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Issue Size |
SAR 100 mln |
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Eligibility Ratio |
Each shareholder will be granted one right for every two shares held |
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Record Date |
Dec. 11, 2024 (Shareholders registered with Edaa by the close of trading on the second day following the general meeting date) |
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Trading Period |
Dec. 17-24 |
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Subscription Period |
Dec. 17-29 |
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Reason |
Support the insurer’s future plans, enhance financial solvency margin, boost statutory reserve, and fulfill the requirements of capital |
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Rights Issue Proceeds |
Banks Deposits |
SAR 87.5 mln |
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Deposit Increase |
SAR 7.5 mln |
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Offering Fees |
SAR 5 mln |
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Additional Information |
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Financial Advisor, Lead Manager & Underwriter |
Alawwal Capital |
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Co-Underwriter |
Al-Nefaie Investment |
Rights holders are allowed to exercise their right to subscribe to new shares (wholly or partly) up to the number of rights issues available in their portfolios.
The unsubscribed and fractional shares, if any, will be offered to institutional investors, according to the prospectus. Alawwal Capital will underwrite the rights issue if the entire subscription is not fully covered.
Investors not willing to subscribe must sell their rights during the specified trading period to avoid the decline in the value of their investment portfolios as a result of not benefiting from their rights, whether by way of sale or subscription.
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