Riyadh – Mubasher: Saudi Reinsurance Company (Saudi Re) has signed a binding subscription agreement with the Public Investment Fund (PIF) to increase its capital from SAR 891 million to SAR 1.15 billion.
Saudi Re is set to increase its capital with the suspension of pre-emptive rights, by issuing 26.73 million new ordinary shares, representing 30% of the current capital, with a nominal value of SAR 10 per share, according o a bourse filing.
PIF will to pay to the company a subscription amount of SAR 16 per for each new share at a total subscription amount of SAR 427.68 million.
The new shares will be fully subscribed by PIF, bringing its stake in the company to 23.08% after the capital increase.
The capital increase is subject to the non-objection of the Insurance Authority and the approval of the Capital Market Authority.
Following the capital increase, PIF will nominate three board members in Saudi Re.
It is worth highlighting that the net profits of Saudi Re amounted to SAR 31.79 million in the first quarter (Q1) of 2024, a surge from SAR 11.19 million in Q1-23.
