Salama Insurance to launch SAR 150 mln rights issue on July 6

Saudi Cooperative Insurance Co. (Salama) is planning to raise its capital by SAR 150 million, or by 15 percent, to SAR 250 million through a rights issue.

The offering will begin on July 6 and shares will be individually priced at SAR 10, the company said in a statement to Tadawul on Tuesday.

The decision came during a vote held during the insurer’s extraordinary general meeting (EGM) on June 30.

Shareholders, who had been registered as of June 30, will be able to subscribe to new shares and priority rights during the first round, set to be held from July 6 through July 15. Rights can also be traded by shareholders or investors during this stage.

Shareholders and investors are also entitled to subscribe to the new shares during the second round, scheduled for July 26 - July 28. Priority rights will not be traded during this phase.

Any remaining shares will be reoffered to registered shareholders.

In April, Salama received approval from Saudi Arabia’s market regulator, the Capital Market Authority (CMA), for its request to raise its current capital from SAR 100 million through the rights issue, according to a report published by Argaam.