Riyadh – Mubasher: Mediterranean and Gulf Insurance and Reinsurance Company’s (MedGulf) extraordinary general meeting (EGM) approved a decision to raise the company's capital to SAR 800 million from SAR 400 million via a rights issue.
Eligibility for obtaining right issue shares will be for shareholders registered in the group’s register at the depository centre at the end of trading on 13 September, according to a statement on Tuesday to the Saudi Stock Exchange (Tadawul).
Medgulf noted that capital hike aims to improve its solvency and to support its financial position.
The firm also approved a decision to amend article no. 8 of its articles of association.
In a separate statement, the Saudi insurance company stated that the rights issue trading period will start on 17 September and end on the 24th.
Last month, the Saudi Capital Markets Authority (CMA) approved MedGulf’s request to double its capital through an SAR 400 million rights issue.
By 12:04 pm Saudi time, MedGulf’s stock jumped 10% to SAR 15.20.