AXA updates use of rights issue proceeds

AXA Cooperative Insurance Co. (AXA Insurance) has updated use of its rights issue proceeds until June 30, 2018.

The insurer used SAR 150 million from a total of SAR 250 million in rights issue proceeds for boosting its solvency margin until June 30, 2018, AXA said in a statement to Tadawul on Wednesday.

A total of SAR 125 million was injected in various investments, while SAR 25 million was allocated as a statutory deposit in line with regulations governing rights issues.

The firm also paid SAR 50 million to buy an insurance portfolio.

The direct and indirect costs of the rights issue stood at SAR 7.2 million, the net rights issue proceeds amounted to SAR 242.8 million.

A difference of SAR 2.78 million was observed in capital increase costs, which were originally estimated at SAR 10 million as stated in the prospectus, the company added. 

AXA spent SAR 40 million to establish the company’s headquarters, and develop other infrastructure, the statement said.  Any additional costs will be financed from the company’s reserves.