AXA Insurance details use of right issue proceeds

AXA Cooperative Insurance Co. has allocated SAR 150 million from a total of SAR 250 million in rights issue proceeds for boosting its solvency margin, the insurer said in a statement to Tadawul on Thursday. 

After deducting the direct and indirect costs of the rights issue of SAR 7.2 million, the net rights issue proceeds amounted to SAR 242.8 million.

A total of SAR 125 million from the allocation was used in various investments, while SAR 25 million was allocated as a statutory deposit in line with regulations governing rights issues.

The firm also paid SAR 50 million to buy an insurance portfolio.

A difference of SAR 2.78 million was observed in capital increase costs, which were originally estimated at SAR 10 million as stated in the prospectus, the company added. 

AXA spent SAR 40 million to establish the company’s headquarters, and develop other infrastructure, the statement said.  Any additional costs will be financed from the company’s reserves.