Walaa subscription, rights trading to start today

02/12/2024 Argaam Special
Logo ofWalaa Cooperative Insurance Co.

Logo of Walaa Cooperative Insurance Co.

The rights trading and subscription period for Walaa Cooperative Insurance Co. starts today, Dec. 2.
The rights issue trading will end on Dec. 9, while the subscription will close on Dec. 12.
 
Walaa plans to offer 42.5 million ordinary shares at SAR 11 each through issuing rights shares worth SAR 467.5 million. Accordingly, the capital will increase by 49.97% to SAR 1.2 billion from SAR 850.58 million.
 
The company intends to use the offering proceeds to support its growth plans, expand activities, enhance the financial solvency margin, and maintain the credit rating.
 
In April, the Capital Market Authority (CMA) approved Walaa’s request to increase capital through a rights issue, Argaam reported.
In November, shareholders ratified the board’s recommendation to increase capital through a SAR 425 million rights offering.
 

Capital Hike Details

Current Capital

SAR 850.58 mln

Current Number of Shares

85.06 mln

New Capital

SAR 1.27 bln

Number of Shares after Increase

127.55 mln

Capital Increase (%)

49.97%
 

Rights Issue Details

Offered Shares

42.5 mln

Offer Price

SAR 11

Issue Size

SAR 467.5 mln

Eligibility Ratio

Each listed shareholder shall have the right to subscribe to 0.4997 share for each existing share

Record Date

Nov. 26, 2024 (Shareholders of record who are registered with Edaa by the end of the second trading day following the EGM)

Trading Period

From Dec. 2 until Dec. 9, 2024

Subscription Period

From Dec. 2 until Dec. 12, 2024

Reason

Supporting the company’s growth and expansion plans, enhancing the financial solvency margin, and maintaining the credit rating.

Proceeds (SAR mln)

Increasing the statutory deposit as per SAMA's requirements

42.5

Long-term investments such as bonds and other fixed-income investments, bank deposits, mutual funds, REITs,  and investments in private companies

345.0

Investing in Saudi-listed equities

70.90

Offering costs

9.1

Total

467.5

Financial Advisor, Underwriter & Lead Manager

AlJazira Capital

 

Right holders may subscribe, in whole or in part, to the new shares in proportion to the rights existing in their portfolios.

 

Any rump and fractional shares will be offered to institutional investors, according to the prospectus. AlJazira Capital will buy unsubscribed shares after the rump offering.

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