Saudi Re gets CMA nod on capital hike, suspending preemptive rights

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co. (Saudi Re) obtained the approval of the Capital Market Authority (CMA) on increasing its capital through offering 26.73 million shares, while suspending preemptive rights at a value of SAR 427.68 million.

The share offering resulting from the capital increase will be limited to investor categories stipulated in the glossary of the offer of securities and continuing obligations and as specified in the offering prospectus, the market regulator said in a statement today, Nov. 25.

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However, the no-objection of the extraordinary general meeting (EGM) of the issuer on the move must be obtained within six months from CMA's approval date. The issuer must satisfy all related regulatory requirements and adhere to the applicable laws.

Saudi Re inked, on July 4, a binding subscription agreement with the Public Investment Fund (PIF), entailing the increase of its capital from SAR 891 million to SAR 1.15 billion, while suspending the preemptive rights. PIF will fully subscribe to the new shares, bringing its ownership in the company to 23.08% after the capital hike, data available to Argaam showed.