Al Rajhi Takaful updates use of rights issue proceeds until Q4

Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) used SAR 195.9 million in net rights issue proceeds until the end of Q4 2017, the company said in a statement to Tadawul on Wednesday.

The insurer allocated SAR 80 million to maintain its solvency margin, in compliance with the applicable regulations.

It also decided to inject additional SAR 70 million in other investments, rather than in establishing new headquarters, to boost its solvency due to an increase in the company’s business volume.

The insurer invested SAR 20 million of its rights issue proceeds in its statutory deposit, in compliance with capital increase requirements.

A total of SAR 25 million were allocated for future expansions and profitability improvement.

A difference of SAR 935,710 was observed in capital increase costs, which were originally estimated at SAR 5 million in the prospectus.

Total rights issue proceeds amounted to SAR 200 million. The direct and indirect rights issue expenses amounted to SAR 4.06 million.