Saudi Re approves 30% capital hike, suspends preemptive rights

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co.’s (Saudi Re) shareholders approved increasing its capital through issuing 26.73 million new shares, while suspending preemptive rights, during the extraordinary general meeting (EGM) held on Dec. 24.

In a Tadawul filing, the company said the Public Investment Fund (PIF) will subscribe to all the new shares, increasing its ownership in the company to 23.08% following the capital increase.

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According to data available from Argaam, Saudi Re inked a binding subscription agreement with the PIF in July.

As part of the subscription agreement, the insurer will increase its capital from SAR 891 million to SAR 1.15 billion while suspending the preemptive rights. The PIF will fully subscribe to the new shares, bringing its ownership in the company to 23.08% after the capital hike.