Saudi Reinsurance Company (Saudi Re) has announced the results of the subscription to the new shares issued as part of its capital increase exercise, with suspension of pre-emptive rights. The announcement came following the closure of the of trading on 30 December 2024.
The announcement, lodged with the Tadawul by Saudi Re said that a total of 26,730,000 shares with a total value of SAR427,680m ($114m), at a coverage ratio of 100% were fully subscribed. These 26,730,000 shares were fully subscribed by the Public Investment Fund (PIF), where the new shares’ offering price stood at SAR16.
The announcement statement added that the PIF, being the investor who fully subscribed to all the new shares, shall not dispose-off any of these shares for a period of two years following the date of their listing, as per the relevant waiver issued by the Capital Market Authority.
Saudi Re expects the disbursement of the proceeds, specified in the prospectus, during the first quarter of 2025 said the company in a separate announcement.
According to the prospectus the new ordinary shares represent an increase of 30% to Saudi Re’s capital as it will jump from SAR891m to SAR1.158bn post the offering. The PIF will own 23.08% of the company.
The prospectus added that the net proceeds will primarily be used to increase the statutory deposit and the company’s financial investments. It revealed that SAR27.73m will be used to increase statutory deposit while SAR398.980m will be directed to financial investment.