CMA approves MEDGULF's SAR 420 mln capital hike through rights issue

Logo of The Mediterranean and Gulf Insurance and Reinsurance Co.

The Capital Market Authority (CMA) approved the request received from The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) for a SAR 420 million capital increase via rights issue.

Eligibility to rights issue will be to shareholders registered in the shareholders registry at the Securities Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general meeting (EGM), which will be determined by the company's board of directors later.

The offering price and the number of shares offered for subscription will be determined by the firm after market closing of the same day on which the EGM is to be held.

In April, the company’s shareholders approved reducing the company's capital by 12.5% to SAR 700 million from SAR 800 million, through writing off 10 million shares, Argaam reported.

Later, the company’s board of directors amended its recommendation to increase capital via rights issue to SAR 420 million instead of SAR 350 million.

The capital increase is expected to take place in Q3 2021 and will likely hike the offering-related expenses by SAR 900,000.