RIYADH: The Mediterranean and Gulf Insurance and Reinsurance Company (MEDGULF) plans to increase its capital by 50 percent to boost its solvency and leverage business expansion opportunities.
The company plans to increase its capital from SR700 million ($186.6 million) to SR1.050 billion ($279.9 million), by offering 35 million new ordinary shares through a rights issue at an offer price of SR12 , and a nominal value of SR10 per share, a statement revealed.
Up to 15.9 percent of the offering proceeds will be invested in information technology applications with focus on business development, sales generation and customer service, the company noted in the offering prospectus.
MEDGULF received approval on the capital increase from the Saudi Central Bank in June 2021 and from Saudi Capital Market Authority (CMA) in September 2021. The company will have its extraordinary general assembly meeting on November 3rd to discuss the offering plans further.
MEDGULF is a major player in the Saudi insurance industry with health insurance being the largest business division, representing 72 percent of gross premiums as on December 31, 2020, followed by motor insurance at 17 percent and general insurance at 11 percent.
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