Walaa invests SAR 210 mln of rights issue proceeds in short-term deposits

Saudi United Cooperative Insurance Co. (Walaa) said it has invested SAR 210.11 million from its rights issue proceeds in short-term deposits.

Total proceeds from the rights issue that the company held in May 2015 had amounted to SAR 240 million. The direct and indirect expenses of the issue reached SAR 9.89 million, while the total net proceeds were SAR 230.1 million.

An amount of SAR 20 million was added to the company’s statutory deposits, the insurer said.

The actual expenses of the capital increase costs came to SAR 107,700 less than the original estimate of SAR 10 million.

“The difference is due to actual final expenses being lower than what was initially estimated,” Walaa said in a statement to the Saudi bourse.

The company’s cash and cash equivalent investments edged up to SAR 105.1 million, compared to SAR 105 million estimated in the prospectus.

Due to the current market conditions, Walaa said it invested an additional cash and cash equivalent of SAR 105 million, and said it will reinvest SAR 73.5 million in bonds and other fixed-income investments. The company will also invest SAR 31.5 million in Tadawul-listed companies.