Al-Rajhi Takaful uses SAR 175.9 mln from rights issue proceeds towards investments

Al-Rajhi Company for Cooperative Insurance (Al-Rajhi Takaful)  has used SAR 175.9 million of the total SAR 200 million it generated from a recent rights issue to boost its solvency margin and establish a new headquarters, the company said in a statement to Tadawul.

A total of 20 million was added to the insurer’s statutory reserve as part of requirements related to its capital increase. Direct and indirect expenses associated with the rights issue amounted to SAR 4.06 million, while net proceeds reached SAR 195.9 million. 

When compared to the prospectus, a difference of SAR 935.7 was observed in capital increase costs, which were originally estimated at SAR 5 million.