Saudi Arabia-based regional insurer the Mediterranean and Gulf Insurance and Reinsurance Company (MEDGULF) has issued a prospectus for a planned 50% capital increase.
The company plans to increase its capital to one billion and fifty million (1,050,000,000) Saudi riyals from seven hundred million (700,000,000) riyals, by offering 35 million new ordinary shares through a rights issue at an offer price of 12 Saudi riyals, and a nominal value of ten riyals per share.
MEDGULF says the capital increase is aimed at boosting solvency and leveraging business expansion opportunities.
SNB Capital has been appointed as financial advisor, lead manager, and underwriter for the offering, following regulatory approval from the Saudi Capital Market Authority (CMA).
Up to 15.9% of proceeds will be invested in information technology applications with focus on business development, sales generation and customer service, the company noted in the prospectus blueprint.
A major player in the insurance industry of Saudi Arabia, MEDGULF offers a broad range of products via three business divisions: health, motor and general insurance.
Health insurance is the largest business division, representing 72% of gross premiums as on December 31, 2020, followed by motor insurance (17%) and general insurance (11%).