The Capital Market Authority (CMA) has approved the request from the Saudi Reinsurance Company (Saudi Re) (8200) to increase its capital by approximately SAR 428 million.
This will be through the offering of 26.73 million shares, with the suspension of preemptive rights.
Details
The CMA clarified that the approval of the company’s extraordinary general assembly is required within six months of the first approval.
Saudi Re must also complete all related regulatory procedures and requirements.
The capital increase shares will be offered exclusively to the investor categories specified in the securities offering and continuous obligations rules.
This will be under the offering prospectus that will be published later.
So what
The new shares represent 30% of the company’s current capital of SAR 891 million, and they will be fully subscribed by the Public Investment Fund (PIF).
PIF’s ownership in Saudi Reinsurance’s capital will increase to about 23% after the capital increase, pushing the company’s capital to exceed SAR one billion.
This support from the Saudi sovereign fund is part of its ongoing investments in local companies.
The most recent example of this is its acquisition of 54% of the giant media group MBC for approximately USD two billion.
Some Context
Saudi Re’s net profit rose more than tenfold in the third quarter of this year, reaching nearly SAR 400 million, compared to the same period in 2023.
This growth is attributed to the company’s business expansion, aligning with its strategy and work plan.
Additionally, its net profit for the first nine months of the year surged to about SAR 475 million, reflecting a YoY increase of over 351%.
Earnings per share increased to SAR 5.33, compared to SAR 1.18 in the same period of 2023.
