SAICO remaining shares on offer; rights issue 93.4% subscribed

Saudi Arabian Cooperative Insurance Co.’s (SAICO), which has recently completed its rights issue, said that it will offer remaining shares to institutional investors on Sunday until Monday, June 29.

Priority will be given to investors offering the highest price.

SAICO’s rights issue was 93.4 percent subscribed as investors bought a total of 14 million shares worth SAR 140 million, the insurer said in a statement to Tadawul.

Shares sold during the first round of the process accounted for 27.47 percent of total shares offered, as investors subscribed to 4.12 million shares at a total of SAR 41.2 million. During the second stage, investors bought 9.89 million shares worth SAR 98.88 million, accounting for 65.92 percent.

The insurer plans to use SAR 6 million from the total proceeds to cover the rights issue costs, while the remaining funds will enhance its solvency margin and fund future expansions.

Saudi-based insurers such as Wafa Insurance, Arabia Insurance Cooperative Co. (AICC), United Cooperative Assurance (UCA), and Al-Alamiya have recently raised their capitals through rights issues in an attempt to offset accumulated losses.

The crowded insurance sector in the kingdom has come under pressure in recent years due to low penetration rates and higher costs, which has made it more difficult for smaller companies to defend their market share.

"  SAICO's  IPO  "