Salama Insurance’s board recommends SAR 150m capital raise through a rights issue

The board of directors of Salama Cooperative insurance Company recommended a capital raise of SAR 150m through a rights issue in its meeting held June 12, 2014.

The capital raise is conditional upon obtaining the GA’s and official parties’ approvals as indicated by the company in its filing to Tadawul today.

The number of shares to be issued for IPO and shares’ price will be determined at the general assembly meeting. The raise is limited to registered shareholders’ at the end of the GA’s day.

The company added that this capital raise is intended to enhance its solvency margin and to support future expansions.