AI Summary
Logo of Allied Cooperative Insurance Group (ACIG)
Allied Cooperative Insurance Group (ACIG) announced the prospectus for its capital increase through a SAR 209 million rights offering.
The company plans to offer about 20.9 million shares at SAR 10 each, to increase capital by 71.82% from SAR 291 million to SAR 500 million.
The planned capital hike is aimed mainly to support the company’s future plans and enhance its solvency margin.
In January 2024, the insurer received the Insurance Authority's (IA) approval on the move. In January 2025, the IA extended its go-ahead for an additional six months. Last March, the company obtained the Capital Market Authority's (CMA) no-objection on the potential capital increase.
ACIG will hold an extraordinary general meeting (EGM) on May 18 to get shareholders’ voting on the proposed rights issue.
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Capital Hike Details |
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Current Capital |
SAR 291 mln |
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No. of Shares |
29.1 mln |
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New Capital |
SAR 500 mln |
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New Number of Shares |
50 mln |
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Capital increase (%) |
71.82% |
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Par Value |
SAR 10 |
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Rights Issue Details |
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Offered Shares |
20.9 mln |
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Offer Price |
SAR 10 |
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Issue Size |
SAR 209 mln |
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Eligibility Ratio |
Each listed shareholder can subscribe to 0.7182 right per each owned share |
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Rights Issue Proceeds |
To fulfill the capital solvency requirements |
145.75 |
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Increasing the statutory deposit |
31.35 |
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Upgrading the technical system for insurance and financial operations |
15.00 |
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Promoting new products (advertising and branding) |
12.15 |
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Offering costs |
4.75 |
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Total |
209.00 |
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Additional Information |
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Financial Advisor, Underwriter & Lead Manager |
Alistithmar Capital |
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