‎MEDGULF approves capital hike to SAR 1.05 bln via rights issue

‎MEDGULF approves capital hike to SAR 1.05 bln via rights issue

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Co.’s (MEDGULF) shareholders approved the board of directors’ recommendation to increase capital from SAR 700 million to SAR 1.05 billion through a rights issue worth SAR 420 million, during the extraordinary general assembly meeting (EGM) held on Nov. 3.

Capital Increase Details

Current capital

SAR 700 mln

Number of shares

70 mln

Capital increase%

50%

Capital after increase

SAR 1.05 bln

Number of shares after increase

105 mln

Rights Issue Details

Number of shares offered

35 mln

Offer price

SAR 12

Issue premium

SAR 2 per share please remove

Size of issue

SAR 420 mln

Rights coefficient

0.5 right per existing share

Record date

Shareholders owning shares by the end of trading on the date of the extraordinary general meeting

Uses of offering proceeds

Fund the company's potential investments

SAR 377 mln

Increasing the statutory deposit

SAR 36 mln

Offering costs

SAR 7 mln

In a separate statement, the Saudi Exchange (Tadawul) announced MEDGULF’s daily trading fluctuation limit after its capital hike will be based on a share price of SAR 19.54.

All outstanding orders will be cancelled.

The Securities Depository Center (Edaa) will deposit the rights into the investor’s portfolios by Monday, Nov. 8, the statement said.