The Board of Directors of Saudi Re, the first reinsurance company established in Saudi Arabia, has recommended a 50% increase in the company’s capital to SAR 1.336 billion (approx. USD 356m) through a rights issue.
A news report by Reinsurance News indicated that currently, Saudi Re’s capital stood at SAR 891 million (approx. USD 238m) with 89.1 million shares outstanding.
According to a bourse filing, the reinsurer’s Board has recommended an increase in capital through a SAR 445.5 million (approx. USD 119m) rights issue.
This would raise the firm’s capital by 50% to SAR 1.336 billion (approx. USD 356m), taking the number of shares after the increase to 133.65 million shares.
It’s understood that the reason for the increase in capital is to strengthen Saudi Re’s capital base and support its future expansion plans.
According to the company, the increase is pending approval of the Saudi Central Bank (SAMA), Capital Market Authority (CMA) and other regulatory authorities, as well as the approval of its extraordinary general meeting.
