Saudi Reinsurance Co. (Saudi Re) plans a substantial capital increase of SAR267.3 million ($71 million) through a strategic partnership with the Public Investment Fund (PIF).
The reinsurance company has signed a binding subscription agreement to boost its capital from SAR 891 million to SAR 1.15 billion. This will be achieved by issuing 26.73 million new ordinary shares at SAR10 each, according to a recent filing.
The new shares, representing 30% of the company’s current capital, will be fully subscribed by PIF at SR16 per share, resulting in a total subscription amount of SAR427.68 million. This transaction will give PIF a 23% ownership stake in the company post-capital increase.
Upon completion of the deal, Saudi Re will appoint three PIF-nominated members to its board of directors. Al Rajhi Financial Co. advises Saudi Reinsurance Co., while GIB Capital advises PIF on the transaction.
The capital increase, backed by PIF, aims to strengthen Saudi Re’s financial position and competitive edge. It also aligns with Saudi Arabia’s Vision 2030, which seeks to foster a strong investment climate, diversify the economy, and strengthen the insurance sector.
