Al Alamiya for Cooperative Insurance Company (the “Company”), is pleased to share the successful outcome of Rights Issue of SR 200 Million.
You may be aware that for regulated companies, listed in the Kingdom of Saudi Arabia, a Rights Issue is the mechanism used by shareholders to fund companies as they grow and/or require additional capital on a ‘business as usual’ basis.
The objective of this capital increase through Rights Issue for Al Alamiya was to maintain the solvency margin of the business and support the future growth of the company.
Subscription Periods for the Rights started on 13/01/2015 and ended on 27/01/2015. During these two periods, our shareholders responded by subscribing to 97.83% of the New Shares. We received equally positive response from the Institutional Investors, for the remaining shares during the Rump Offering period, with a coverage percentage of 842%.
This overwhelming response from our shareholders and investors is a testament of their confidence in this Company. With this additional equity increase, we are fully compliant with applicable solvency requirements of SAMA and CMA.
We believe we have the tools and resources needed to ensure that the Company keeps on fulfilling its potential and delivering value for our customers and shareholders.