Tadawul-listed Allied Cooperative Ins. Group (ACIG) is set to raise its issued and paid- up capital by 71.8% to SAR 500 mn divided across 50 mn shares through a rights issue of 209 mn shares, according to a prospectus (pdf). Each registered shareholder will be granted 0.72 shares for each share owned, while unsubscribed shares — if any — will be offered to institutional investors in a rump offering.

Uh, Enterprise? What’s a rights issue? Think of a right as a form of tradable security, each giving a shareholder the right to buy new shares at a predetermined price before those shares are offered to anyone else.

Use of funds: Proceeds from the offering — after deducting SAR 4.75 mn in expenses — are earmarked for meeting the solvency margin and supporting the firm’s growth plans.

ADVISORS: ACIG enlisted Alistithmar Capital as financial advisor, lead manager, and underwriter and tapped Khaligyoun as counsel.

Market reax: ACIG's share price declined 3.85% to SAR 14.48 apiece at yesterday's close.

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