Malath to pay compensation for unsubscribed shares of rights issue

Malath Cooperative Insurance Co. said it will distribute on Sunday, Dec. 10, an amount of SAR 12.3 million, representing compensation for unsubscribed shares.

The amount will be paid to eligible shareholders who did not exercise their rights to subscribe to new shares during the insurer’s rights issue, the insurer said in a bourse statement.

Saudi Investment Bank will deposit the amounts in the shareholders’ bank accounts.

Malath’s extraordinary general assembly in October approved raising the company’s capital by 316.7 percent to SAR 500 million from SAR 120 million, through a rights issue of SAR 380 million.

The rights issue took place in October and was nearly 80 percent subscribed, with investors buying a total of 30.3 million shares worth SAR 303 million. 

The remaining shares were offered to institutional investors later and were sold for SAR 89 million.