AXA Insurance says rights issue to be managed by Saudi Fransi Capital

AXA Cooperative Insurance Co. signed on Sunday a rights issue management agreement with Saudi Fransi Capital Co.

Saudi Fransi will act as the financial advisor, lead manager, and underwriter of the offering. 

“We’re committed to cover AXA rights issue offering to raise the insurer’s capital from SAR 200 million to SAR 450 million,” said Yasser Al Rumayyan, chief executive of Saudi Fransi Capital. 

The insurer plans to offer 25 million shares at SAR 10 per share.

The first stage starts Tuesday, and will run for a five-day period. 

Only registered shareholders may exercise their rights to subscribe— wholly or partially— for the new shares up to the number of rights deposited in their accounts after the general assembly meeting, Al Rumayyan added. 

The second offering round will start from March 1 and will run until March 3. During this phase, rights holders, whether registered shareholders or rights buyers, may exercise their right to subscribe for new shares. Trading of rights will not be permitted during this period.

Earlier this month, AXA's​ board gave the go-ahead for the rights issue in its extraordinary general meeting, according to data compiled by Argaam.​