Walaa Cooperative Insurance Co. announces the developments regarding the use of proceeds from the rights issue shares subscription which was held during 05-05-2015 to 25-05-2015 as following:
1.Actual used for proceeds from the rights issue shares subscription until end of 18-02-2018 compared with what was declared in rights issue prospectus :A- Total proceeds from the capital increase amounted to SR 240,000,000. B- Total direct and indirect expenses related to the capital increase amounted to SR 9,892,310. C- Net proceeds from the capital increase amounted to SR 230,107,690. D- An amount of SR 20,000,000 has been added to the statutory deposit consequent to the capital increase. E- Remaining proceeds of SR 210,107,690 have been invested in short term deposits.
2.Deviations in actual used for proceeds compared with what was declared in rights issue prospectus : A- A difference of SR 107,690 in the expenses related to the capital increase. The estimate of expenses related to the capital increase in the prospectus was SR 10,000,000. The difference is due to actual final expenses being lower than what was initially estimated. B- A difference of SR 105,107,690 in Cash and cash equivalents investments (the estimated amount of this investment as indicated in the prospectus was SR 105,000,000).
3.Deviations reasons : This difference is due to reinvestment of the savings in the expenses related to the rights issue as mentioned in point (2.a) of this announcement.
4.Details and projects progress percentage compared with what was declared in rights issue prospectus : In addition, and due to the current market conditions, the Company also invested an additional SR 105,000,000 in Cash and cash equivalents which will be reinvested later in bonds and other fixed income investments (SR 73,500,000) and in companies listed in the Saudi Stock Exchange (SR 31,500,000) as indicated in the prospectus.