JEDDAH - Saudi Arabia’s Capital Market Authority (CMA) has approved the initial public offerings (IPO) of four new insurance companies to raise a total of SR260 million.
The companies are AXA for Cooperative Insurance, ACE Arabia Cooperative Insurance Company, Weqaya Takaful Insurance and Reinsurance and Al-Rajhi Company for Cooperative Insurance. The offer price will be SR10 per share and the period will be from April 18 to April 27, the CMA said in a press statement.
The IPO will be launched collectively by the four companies.
AXA for Cooperative Insurance, with a capital of 200 million riyals, will offer 80 million shares to the public, which represent 40 per cent of the company shares. ACE Arabia for Cooperative Insurance, with a capital of 100 million riyals, will offer 40 million shares, or 40 per cent of the company shares.
ACE Arabia will list with capital of SR100 million ($26.6 million) and four million shares will be offered to the public which represents 40 percent of the company shares.
Giles Ward, ACE’s regional managing director for Mena, said “this development marks an important stage towards the finalization of the establishment of ACE Arabia as a locally-domiciled company in Saudi Arabia. Saudi Arabia has been a key market for ACE in the region for many years and our team there have done an excellent job in building a company with a strong track-record of profitable growth.”
ACE has had a presence in the Saudi Arabian market for 30 years in partnership with the Elkhereiji Group. Elkhereiji Executive Director Abdul Aziz Elkhereiji said “with our long track record of joint venture partnership and agency operation with the ACE group, we are very much looking forward to the incorporation of the Saudi-registered ‘ACE Arabia Cooperative Insurance Company’ in the Kingdom of Saudi Arabia with our historic partner.”
ACE’s Mena operations are headquartered in Manama, Bahrain.
Weqaya Takaful Insurance, with a capital of SR200 million, will offer 80 million shares, which represent 40 percent of the company shares.
The CMA said that the fourth company, Al Rajhi Company for Cooperative Insurance with a capital of SR200 million, will offer 60 million shares or 30 percent of the company shares to the public. – SG