Saudi Re submits capital hike file to CMA

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co. (Saudi Re) submitted a request to the Capital Market Authority (CMA) for a capital increase via share issuance while suspending pre-emptive rights.

In a statement to Tadawul, the company said it will announce any significant developments in due course.

According to data available on Argaam, Saudi Re inked, on July 4, a binding subscription agreement with the Public Investment Fund (PIF).

As part of the subscription agreement, the insurer will increase its capital from SAR 891 million to SAR 1.15 billion while suspending the pre-emptive rights.

PIF will fully subscribe to the new shares, bringing its ownership in the company to 23.08% after the capital hike.

Saudi Re’s board of directors recommended a capital increase by issuing 26.73 million new ordinary shares, representing 30% of its current capital, at a nominal value of SAR 10 each, at an offering price of SAR 16 apiece, totaling SAR 427.68 million, the statement added.