CMA approves MedGulf capital hike through rights issue

Saudi Capital Market Authority (CMA) approved The Mediterranean and Gulf Insurance and Reinsurance Company’s (MedGulf) request to increase capital by SAR 400 million through a rights issue.

The increase will be limited to the shareholders who are registered in the shareholders registry at the Security Depository Center as of the closing of the second trading day after the extraordinary general assembly meeting, the regulator said in a statement.

The offering price and the number of shares offered for subscription will be determined by the insurer after market closing of the same day in which the extraordinary general assembly meeting is to be held.

The rights issue prospectus will be posted and made available to the public at a later time, the statement added.

In December 2016, MedGulf’s board of directors  recommended a capital hike through a SAR 400 million rights issue, according to data available on Argaam.