Saudi Arabia's Walaa Cooperative Insurance Co. on Wednesday signed an insurance policy with Saudi Telecom Company (STC) with a total value of 19 million riyals ($5 million) to provide Public Offering of Securities Insurance (POSI) coverage.
The contract period is for six years from December 15, 2021, the insurer said in a statement to the Saudi Stock Exchange (Tadawul).
The financial impact of the contract will reflect on Walaa’s 2021 financial results, it added.
A POSI policy offers cover against claims arising from public offerings of a company’s securities, including initial public offerings and rights issues.
Earlier this week, STC saw its shares fall steeply following a secondary share sale in which the kingdom’s sovereign wealth fund, Public Investment Fund (PIF), sold part of its stake in the company.
(Writing by Brinda Darasha; editing by Cleofe Maceda)
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