United Cooperative launches rights issue

United Cooperative Assurance Company launched on Tuesday its rights issue which is set to continue until March 10.

The first stage will last until March 5, according to data available on Argaam.

The insurer is offering 21 million shares at SAR 10 per share to raise its capital from SAR 280 million to SAR 490 million.

During the first stage, registered shareholders can exercise their right to subscribe to new shares according to the number of rights allocated for their portfolios.

Shareholders and investors can also trade rights during this stage.

United said it plans to use the capital raise to finance future expansions and to maintain its required solvency margin. About SAR 5.3 million of the proceeds will go towards rights issue expenses.

United Cooperative Assurance Company Price Limits
SAR 17.07	Closing price per share
± 10%	Share price deviation
± SAR 1.70 (15.35-18.80)	Daily price limit per share
SAR 10	Rights issue price
SAR 7.07	Indicated right value at closing

Capital Raise Details
SAR 280 mln	Current Capital
28 mln	Current number of shares
75%	Percentage of the increase
SAR 490 mln	New capital
49 mln	Number of shares after increase
Rights Issue Details
21 mln	Number of shares
SAR 10	Price per share
SAR 210 mln	Size of issue
Feb. 18, 2015	Record date
3 rights for every 4 shares (0.75/share)	Rights allowed
Other details
Alistithmar Capital	Lead manager and lead underwriter
BMG Group	Financial advisor
SAMBA, NCB, RIBL, Saudi investment	Receiving Banks

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