Saudi Reinsurance Company (Saudi Re) has commenced its subscription period for a capital increase, running from December 26th to 30th.
The offering comprises 26,730,000 new ordinary shares, which represent 30% of the company’s current capital, with a nominal value of SAR 10 per share (around USD 2.6).
This move follows the company’s July announcement to boost its capital by SAR 267.3 million (around USD 71 million) through a strategic subscription with the Public Investment Fund (PIF).
To further incentivise the capital increase, the PIF agreed to a share price of SAR 16 (around USD 4.26) per share, generating a total value of SAR 427.6 million (around USD 114 million).
This transaction is to grant PIF a 23.08% ownership stake in Saudi Re following the capital increase. Both parties signed a non-binding memorandum of understanding in October 2023 outlining the agreement, and was extended on December 25, 2023, for an additional six months.
The increase, approved by shareholders on December 24th, will raise Saudi Re’s capital from SAR 891 million (around USD 237.60 million) to SAR 1.15 billion (around USD 306.31 million), strengthening its position in the reinsurance market.
This capital infusion is expected to enhance Saudi Re’s underwriting capacity and support its strategic growth initiatives.
