Salama issues prospectus for rights offering

Logo of Salama Cooperative Insurance Co.

Salama Cooperative Insurance Co. announced today, Oct. 6, the prospectus for its capital increase through a SAR 100 million rights offering.
 

It plans to offer 10 million shares at SAR 10 each, raising capital by 50% from SAR 200 million to SAR 300 million.

 

For More IPOs

 

The company aims to use the proceeds to support future plans, strengthen its solvency margin, meet minimum capital requirements, and increase the statutory deposit.

 

Shareholders will vote on the board’s recommendation to increase capital during the extraordinary general meeting (EGM) to be held on Oct. 24.

 

The Capital Market Authority (CMA) approved late last month Salama’s request to top-up capital through a rights issue.

 

Capital Increase Details

Current Capital

SAR 200 mln

Number of Shares

20 mln

Capital Hike (%)

50%

New Capital

SAR 300 mln

New Number of Shares

30 mln
 

Rights Issue Details

Offered Shares

10 mln

Offer Price

SAR 10

Issue Size

SAR 100 mln

Eligibility Ratio

1 right per each two existing shares

Proceeds (SAR mln)

Bank deposits

87.5

Statutory deposit increase

7.5

Offering costs

5
 

Additional Information

Financial Advisor, Lead Manager & Underwriter

Alawwal Capital

Co-Underwriter

Al-Nefaie Investment
 
Issues Prospectus

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