First stage of Salama rights issue ends Wednesday: Tadawul

The Saudi Stock Exchange (Tadawul) said that Wednesday is the end of the first subscription period and tradable rights trading for Salama Cooperative Insurance Co.

Salama is offering 15 million shares at SAR 10 per share to raise its capital from SAR 100 million to SAR 250 million.

During the subscription period, each registered shareholder can subscribe to 1.5 new shares as well as trade rights.

The company has said it will use the proceeds to boost 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.