Riyadh (Saudi Arabia) : The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF) announced today, Monday, the last day of the trading period for its rights issue of the New Shares issued by the Company with the objective to increase its share capital by 50%. The subscription period will end on 25th of November 2021G.
The company had previously announced that the Subscription period will commence on 15th of November 2021G, and end on the 25th of November 2021G. Subscription is exclusive to the shareholders registered at the end of the trading period on the day of the EGM and who were registered in the company’s shareholders register at the Depository Center Company at the end of the second trading day following the EGM.
MEDGULF, the leading insurance service provider in Saudi Arabia, seeks to increase its share capital by 50% to 1,050 million Saudi riyals from 700 million Saudi riyals, by offering 35 million new ordinary shares through a rights issue at an offer price of 12 Saudi riyals with a nominal value of 10 Saudi riyals per share.
The company plans to use the proceeds of the offering in fostering strategic expansion plans and improving solvency margins. Part of the proceeds will be invested in enhancing information technology applications owned by the company, with a focus on business development and service optimization for customers across Saudi Arabia.
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About MEDGULF
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%).
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