Logo ofSalama Cooperative Insurance Co.
Salama Cooperative Insurance Co.’s rights issue trading and subscription to the new shares began today, Dec. 17, according to a statement toTadawul. 
Rights trading will end on Dec. 24, while subscription to new shares will close on Dec. 29.
The insurer intends to offer 10 million shares, at SAR 10 each, via a SAR 100 million rights issue to increase capital by 50% from SAR 200 million to SAR 300 million.
The capital increase will help support the insurer’s future plans, enhance solvency, boost statutory reserve and fulfill the requirements of capital.
The Capital Market Authority (CMA) approved in September the company’s request to increase capital via a rights issue. Salama shareholders recently approved the board’s recommendation to raise capital by SAR 100 million rights issue (one share for every two existing shares).
Capital Increase Details
Current capital
SAR 200 mln
Currentnumber of shares
20 mln
Capital increase (%)
50%
Capital after increase
SAR 300 mln
Number of shares after increase
30 mln
Rights Issue Details
Offered Shares
10 mln
Offer Price
SAR 10
Issue Size
SAR 100 mln
Eligibility ratio
Each shareholder will begranted one rightsfor every two shares held
Record Date
Dec. 11, 2024 (For those registered with Edaa on the second trading day following the general meeting date)
Trading Period
Dec. 17-24
Subscription period
Dec. 17-29
Reason
Fulfilling the minimum requirements of the Insurance Authority
Rights Issue Proceeds
Banks Deposits
SAR 87.5 mln
Deposit Increase
SAR 7.5 mln
Offering fees and costs
SAR 5 mln
Additional Information
Financial Advisor, Lead Manager Underwriter
Alawwal Capital
Co-Underwriter
Al-Nefaie Investment
Rights holders are allowed to exercise their right to subscribe to new shares (wholly or partly) up to the number of rights issues available in their portfolios. Trading in rights and subscriptions to new shares for registered shareholders and new investors will be in accordance with the prospectus.
The unsubscribed and fractional shares, if any, will be offered to institutional investors, according to the prospectus. Alawwal Capital will underwrite the rights issue if the entire subscription is not fully covered.
Investors not willing to subscribe must sell their rights during the specified trading period to avoid the decline in the value of their investment portfolios as a result of not benefiting from their rights, whether by way of sale or subscription.
Logo ofSalama Cooperative Insurance Co.
Salama Cooperative Insurance Co.’s rights issue trading and subscription to the new shares began today, Dec. 17, according to a statement toTadawul.
Rights trading will end on Dec. 24, while subscription to new shares will close on Dec. 29.
The insurer intends to offer 10 million shares, at SAR 10 each, via a SAR 100 million rights issue to increase capital by 50% from SAR 200 million to SAR 300 million.
The capital increase will help support the insurer’s future plans, enhance solvency, boost statutory reserve and fulfill the requirements of capital.
The Capital Market Authority (CMA) approved in September the company’s request to increase capital via a rights issue. Salama shareholders recently approved the board’s recommendation to raise capital by SAR 100 million rights issue (one share for every two existing shares).
Capital Increase Details
Current capital
SAR 200 mln
Currentnumber of shares
20 mln
Capital increase (%)
50%
Capital after increase
SAR 300 mln
Number of shares after increase
30 mln
Rights Issue Details
Offered Shares
10 mln
Offer Price
SAR 10
Issue Size
SAR 100 mln
Eligibility ratio
Each shareholder will begranted one rightsfor every two shares held
Record Date
Dec. 11, 2024 (For those registered with Edaa on the second trading day following the general meeting date)
Trading Period
Dec. 17-24
Subscription period
Dec. 17-29
Reason
Fulfilling the minimum requirements of the Insurance Authority
Rights Issue Proceeds
Banks Deposits
SAR 87.5 mln
Deposit Increase
SAR 7.5 mln
Offering fees and costs
SAR 5 mln
Additional Information
Financial Advisor, Lead Manager Underwriter
Alawwal Capital
Co-Underwriter
Al-Nefaie Investment
Rights holders are allowed to exercise their right to subscribe to new shares (wholly or partly) up to the number of rights issues available in their portfolios. Trading in rights and subscriptions to new shares for registered shareholders and new investors will be in accordance with the prospectus.
The unsubscribed and fractional shares, if any, will be offered to institutional investors, according to the prospectus. Alawwal Capital will underwrite the rights issue if the entire subscription is not fully covered.
Investors not willing to subscribe must sell their rights during the specified trading period to avoid the decline in the value of their investment portfolios as a result of not benefiting from their rights, whether by way of sale or subscription.
