PIF fully subscribes to Saudi Re’s capital hike shares

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co. (Saudi Re) announced, on Dec. 29, the completion of the subscription process for the new shares issued as part of its capital increase, with pre-emptive rights suspended.

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The deposit of the new shares into PIF’s account will be made through the Securities Depository Center Co. (Edaa).

Furthermore, Saudi Re confirmed that it agreed with the PIF to appoint a third board member from the candidates nominated by PIF. This appointment will be done promptly after the subscription period, subject to obtaining the necessary regulatory approvals.

In a separate statement to Tadawul, Saudi Re noted that the proceeds from the offering, as detailed in the prospectus, are now expected to be utilized in Q1 2025, revising the previous expectation of Q4 2024 due to the completion of the subscription process on Dec. 30, 2024.

According to data available with Argaam, Saudi Re issued 26.73 million shares, suspending preemptive rights, with the full offering subscribed by PIF. This capital increase will boost the company’s capital by 30%, from SAR 891 million to SAR 1.15 billion. PIF will own 23.08% of Saudi Re’s capital following the capital hike.

The proceeds from the offering will be allocated as SAR 26.73 million to increase the statutory deposit and SAR 392.5 million for financial investments.