Logo of MEDGULF
The Mediterranean and Gulf Cooperative Insurance and Reinsurance Co.’s (MEDGULF) subscription to new shares and rights trading begins today, Nov. 15, to increase capital from SAR 700 million to SAR 1.05 billion.
Rights trading will end on Nov. 22, while subscription to the new shares will close on Nov. 25.
The company intends to offer 35 million shares at SAR 12 per share, granting each registered shareholder at the record date nearly 0.5 rights for each share held.
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Capital Increase Details |
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Current capital |
SAR 700 mln |
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Number of shares |
70 mln |
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Capital increase% |
50% |
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Capital after increase |
SAR 1.05 bln |
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Number of shares after increase |
105 mln |
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Rights Issue Details |
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Number of shares offered |
35 mln |
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Offer price |
SAR 12 |
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Size of issue |
SAR 420 mln |
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Rights coefficient |
0.5 right for every share held |
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Record date |
By the close of trading on the EGM date |
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Uses of offering proceeds |
Funding the company's potential investments |
SAR 377 mln |
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Increasing the statutory deposit |
SAR 36 mln |
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Offering costs |
SAR 7 mln |
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Rights issue holders are allowed to exercise their right to subscribe to new shares (in full or in part) up to the number of shares available in their portfolios. Trading in rights issue and subscription to new shares for registered shareholders and new investors will be as per the prospectus.
In the event that shares remain unsubscribed, remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus.
SNB Capital will underwrite the rights issue if the entire subscription is not fully covered.
Investors not willing to subscribe must sell the rights issue during the specified trading period to avoid the resulting decline in the value of their investment portfolios as a result of not benefiting from their rights, whether by way of sale or subscription, the company said.
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