KSA Business: Saudi Re eyes $356m capital boost through IPO – Gulf Digital News

KSA Business: Saudi Re eyes $356m capital boost through IPO – Gulf Digital News

Saudi Reinsurance Company (Saudi Re) has announced that its board has recommended an increase in capital through a SR445.5 million ($118.7 million) rights issue.

Saudi Re, which is listed on the Saudi Exchange (Tadawul), said the move to boost the capital from SR891 million ($237.5 million) to SR1.37 billion ($356 million) is aimed at strengthening its capital base and support its future expansion activities. Accordingly, the number of shares will increase from 89.1 million to 133.65 million.

However, Saudi Re pointed out the capital hike is pending approval of the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and other regulatory authorities, in addition to its extraordinary general meeting.

Last year, Saudi Re had successfully boosted its capital to SR891 million from SR810 million by capitalizing SR81 million from retained earnings. The capital increase was done through a 1-for-10 bonus share distribution, it added.

On the capital hike move, Managing Director and CEO Fahad Al Hesni said: "We have attained a growth rate of 19% over the past three years, as we expand our activities across more than 40 markets in the Middle East, Asia and Lloyd’s Market in the United Kingdom and Africa."

"Our Gross Written Premium (GWP) increased scale by 19.3% to