Walaa subscription, rights trading to start today

Logo of Walaa Cooperative Insurance Co.

The rights trading and subscription period for Walaa Cooperative Insurance Co. starts today, Dec. 2.

The rights issue trading will end on Dec. 9, while the subscription will close on Dec. 12.

For More IPOs

Walaa plans to offer 42.5 million ordinary shares at SAR 11 each through issuing rights shares worth SAR 467.5 million. Accordingly, the capital will increase by 49.97% to SAR 1.2 billion from SAR 850.58 million.

The company intends to use the offering proceeds to support its growth plans, expand activities, enhance the financial solvency margin, and maintain the credit rating.

In April, the Capital Market Authority (CMA) approved Walaa’s request to increase capital through a rights issue, Argaam reported.

In November, shareholders ratified the board’s recommendation to increase capital through a SAR 425 million rights offering.

Capital Hike Details
Current Capital	SAR 850.58 mln
Current Number of Shares	85.06 mln
New Capital	SAR 1.27 bln
Number of Shares after Increase	127.55 mln
Capital Increase (%)	49.97%

Rights Issue Details
Offered Shares	42.5 mln
Offer Price	SAR 11
Issue Size	SAR 467.5 mln
Eligibility Ratio	Each listed shareholder shall have the right to subscribe to 0.4997 share for each existing share
Record Date	Nov. 26, 2024 (Shareholders of record who are registered with Edaa by the end of the second trading day following the EGM)
Trading Period	From Dec. 2 until Dec. 9, 2024
Subscription Period	From Dec. 2 until Dec. 12, 2024
Reason	Supporting the company’s growth and expansion plans, enhancing the financial solvency margin, and maintaining the credit rating.
Proceeds (SAR mln)	Increasing the statutory deposit as per SAMA's requirements	42.5
	Long-term investments such as bonds and other fixed-income investments, bank deposits, mutual funds, REITs, and investments in private companies	345.0
	Investing in Saudi-listed equities	70.90
	Offering costs	9.1
	Total	467.5
Financial Advisor, Underwriter & Lead Manager	AlJazira Capital

Right holders may subscribe, in whole or in part, to the new shares in proportion to the rights existing in their portfolios.

Any rump and fractional shares will be offered to institutional investors, according to the prospectus. AlJazira Capital will buy unsubscribed shares after the rump offering.

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