Riyadh – Mubasher: The shareholders of Gulf General Cooperative Insurance Co gave the green light for increasing the capital by 150% or SAR 300 million through a rights issue.

The new capital will amount to SAR 500 million distributed over 50 million shares, compared to SAR 200 million and 20 million shares prior to the raise.

The 30 million offered shares will hold a nominal value of SAR 10 each, according to a bourse disclosure on Tuesday.

Gulf General aims to support its expansion activity through the capital hike.

Subscribing to new shares and trading on the rights issue will start on 5 July and until 12 July for the rights issue and 15 July for the new shares' subscription, the company said in a separate filing.

The Saudi Exchange (Tadawul) meanwhile announced that the fluctuation limit for Gulf General’s stock will be based on a share price of SAR 19.20.

Accordingly, the outstanding orders will be cancelled.

The rights of Gulf General will be deposited into the eligible investors’ portfolios on 1 July.