Riyadh - The Saudi Capital Market Authority (CMA) has announced that initial public offerings (IPO) will begin tomorrow for 35 million shares of seven insurance companies. The size of the IPO is 350 million riyals at a nominal 10 riyals per share.
A press release issued by CMA yesterday said the insurance companies that have been given the green signal to float their shares are: Sanad for Cooperative Insurance Company, Saudi Arabian Cooperative Insurance Company, Saudi Indian Cooperative Insurance Company, Gulf Union Cooperative Insurance Company, Al Ahli Takaful and Al Ahlia Cooperative Insurance and Allied Cooperative Insurance Group.
Meanwhile, Al Ahlia Cooperative Insurance concluded yesterday an agreement with the Arab National Bank to have the latter stand as the underwriter of its IPO.
Four million shares, or 40 per cent of the company's 100 million riyal capital, will be offered to the public.
Prince Mohammad Bin Bandar Bin Abdul Aziz, chairman of Al Ahlia Cooperative Insurance, said his firm, which has strategic relation with the National Insurance Company, an Egyptian company operating in the Saudi market for the past decade, has signed agreements with Munich Re Group, an international reinsurance company, to cover the insurance risks.
Prince Mohammad expects the IPO to be covered in record time due to the value of floated shares. He added that the high liquidity in the Saudi market means the issue will be oversubscribed.
By Mariam Al Hakeem
© Gulf News 2007
