Riyadh (Saudi Arabia) – December 5, 2021: The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF) announced today results of the sale of remaining shares and final allocation of its rights issue, pointing out that the remaining shares were 834 percent oversubscribed.
The company announced that total proceeds from the sale of rump shares and fractional shares amounted to (98,603,198.50) Saudi riyals, and the number of rump and fractional shares sold out reached (6,247,787) shares at an average sale price of (15.78) Saudi riyals per share, while total compensations paid to rights holders was (23,629,754.50) Saudi riyals.
MEDGULF floated 35 million new ordinary shares at an offer price of 12 Saudi riyals and a nominal value of 10 Saudi riyals per share – to finance investment plans and meet regulatory requirements.
The offering’s proceeds will be used to pursue strategic expansion plans and boost its solvency position. Part of the proceeds will be invested in enhancing information technology applications owned by the company, with focus on business development and service optimization for customers across the Kingdom of Saudi Arabia.
Mr. Rakan Abdullah Abunayyan, Chairman of the Board of Directors of MEDGULF, expressed gratitude for all the parties who made the offering such a success, pointing out that remarkable interest from investors into the offering reflects great confidence in the company’s brand and business prospects.
SNB Capital was appointed as the financial advisor, lead manager, and underwriter.
MEDGULF is a Saudi Joint Stock Company incorporated pursuant to Council of Ministers Resolution No. 233 dated 09/10/2006. The company provides integrated and innovative insurance solutions to a wide range of industries in the Kingdom of Saudi Arabia.
MEDGULF has built a prominent position in the insurance world; and given the growth of its business in a short period of time, it has become the fourth largest insurer operating in the Kingdom of Saudi Arabia.
A major player in the insurance industry of Saudi Arabia, MEDGULF offers a broad range of products via three business divisions: health, motor and general insurance. Health insurance is the largest business division, representing 72% of gross premiums as on December 31, 2020, followed by motor insurance (17%) and general insurance (11%).
© Press Release 2021
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