Al Sagr subscription, rights trading start today

Logo of Al Sagr Cooperative Insurance Co.

The rights trading and subscription period for Al Sagr Cooperative Insurance Co. starts today, July 2.

The rights issue trading will end on July 9, while the subscription process will close on July 14.

For More IPOs

Al Sagr plans to offer 16 million shares at SAR 10 each, totaling SAR 160 million, to increase capital by 114.29%. The post-increase capital will reach SAR 300 million, divided into 30 million shares. 

The capital increase aims to meet minimum requirements, support plans, and strengthen financial solvency.

The company will use the offering proceeds to support its operations and enhance solvency margin to meet the solvency margin requirements set by the Saudi Central Bank on insurance companies operating in Saudi Arabia.

In addition, the company will increase regulatory deposits, invest in debt instruments, increase bank deposits, and replace the technical system for insurance and financial operations.

In April, the Capital Market Authority (CMA) approved Al Sagr’s request to increase capital through a rights issue, Argaam reported.

In June, shareholders ratified the board’s recommendation to increase capital through a SAR 160 million rights offering.