Saudi Reinsurance Company is set to proceed with plans to increase its capital via a new shares issuance to strengthen its financial position.

The Capital Market Authority (CMA) approved the company’s request to boost its capital through offering more than 26.7 million shares with the suspension of pre-emptive rights valued at SAR 427.68 million ($ 113.8 million).

Last July, the company signed a binding subscription agreement with the Public Investment Fund (PIF) to increase its capital from SAR 891 million to more than SAR 1.158 billion with the suspension of pre-emptive rights.

As part of the deal, the company will issue 26,730,000 shares to PIF, bringing the fund’s stake in Saudi Reinsurance to 23.08% after the capital increase.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com