Wataniya Insurance approves 100% capital increase

Wataniya Insurance Co.’s shareholders on Sunday approved doubling capital to SAR 200 million through a SAR 100 million rights issue, the company said in a statement to Tadawul.

The insurer is offering 10 million shares at SAR 10 per share. The proceeds from the rights issue will be used to finance the restructuring of some segments and boost Wataniya’s statutory deposit.

In the first phase, which will be from August 9 to August 18, shareholders of record can subscribe to new shares as per the number of rights deposited in their portfolios after the general assembly.

The second phase will run from August 21 to August 23 when registered shareholders and investors who bought rights during the first stage are allowed to subscribe to the new shares. Rights cannot be traded during this stage. 

In June, the Capital Market Authority (CMA), Saudi Arabia’s market regulator, approved the insurer’s request to increase capital through a rights issue.

Wataniya had earlier appointed ANB Invest as lead manager, financial advisor and underwriter for the offering. Saudi Hollandi Capital was also named as underwriter, Argaam earlier reported.

Receiving banks are Arab National Bank (ANB), National Commercial Bank (NCB), Riyad Bank and Saudi Hollandi Bank.