SAICO wraps up first stage of rights issue

Saudi Arabian Cooperative Insurance Company (SAICO) completed the first stage of its rights issue today, according to Tadawul.

The process was launched on June 9 to raise SAICO’s capital from SAR 100 million to SAR 250 million, according to data compiled by Argaam.

The second stage, which started on June 12, will continue to June 23.

Saudi-based insurers such as Wafa, AICC, United Assurance, and Al-Alamaiya have recently raised their capitals through rights issues in an attempt to offset accumulated losses.

The crowded insurance sector in the kingdom has come under pressure in recent years due to low penetration rates and higher costs, which has made it more difficult for smaller companies to defend their market share.