SAICO Insurance kicks off rights issue

Saudi Arabian Cooperative Insurance Company (SAICO), which plans to raise its capital from SAR 100 million to SAR 250 million, has launched the first stage of its rights issue today.

During this stage, shareholders and the public can trade under the rights of Saudi Arabian Cooperative Insurance Company (SAICO).

The first phase will continue until June 18, followed by the second stage on June 12-23.

SAICO plans to offer 15 million shares at SAR 10 each for shareholders registered on May 31.

The rights issue is part of the company’s plan to maintain its solvency margin.

Saudi-based insurers such as Wafa, AICC, United Assurance, and Al-Alamaiya have recently raised their capitals through rights issues in an attempt to offset accumulated losses, according to data compiled by Argaam.

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.