MEDGULF rights issue 82.15% subscribed

Logo of MEDGULF

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Co.’s (MEDGULF) rights issue was 82.15% covered, as subscribers injected SAR 345.03 million in 28.8 million new shares, the company said in a bourse filing today, Nov 28.

The rump shares will be offered to a number of institutional investors, provided that those institutions bid for these shares. 

Rump shares will be allocated first to the institutional investors with the highest bids. The shares will be allocated proportionately to the institutional investors submitting the same offer. Fractional shares (if any) will be added to the rump shares and treated similarly. 

If shares are not purchased by institutional investors, then those shares shall be allocated to the underwriter who will buy them at the offering price, the statement noted.

The rump offer for 6.25 million shares will start from 10am on Nov. 30, until 5pm on Dec. 1. 

The rights subscription period ended on Nov. 22., according to data compiled by Argaam. 

The subscription period started on Nov. 15, to increase the company’s capital from SAR 700 million to SAR 1.05 billion, through a rights issue of 35 million shares at SAR 10 per share. 

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