BURUJ announced developments regarding right issues

17/04/2017 08:59 AST

Buruj Cooperative Insurance Company announces the developments of the use of the proceeds of the rights issue which has taken place from 07-04-2015G to 21-04-2015G as follows:

1- The effective use of the proceeds as of 16-04-2017G compared to what has been disclosed in the rights issue prospectus:

a. The total proceeds from the capital increase amounted to SR 120,000,000.
b. The total direct and indirect costs related to the capital increase amounted to SR 4,769,014. c. The net proceeds from the capital increase amounted to SR 115,230,986.
d. The amount of SR 12,000,000 has been added to the statutory deposit to align the statutory deposit with the capital increase.
e. The remaining of SR 103,230,986 has been used to fulfill the solvency margin requirements and have been invested as follows:

- Investments in time deposit for SR 60,000,000.
- Investments in local funds for SR 10,000,000.
- Investments in Sukuk and bonds for SR 30,250,000.
- Balance remaining in a current account for SR 2,980,986.

2- The deviations in the effective use of the proceeds from the disclosure made in the rights issue prospectus and the reasons and justifications of the deviations:
a. A difference of SR 230,986 in the costs related to the capital increase. The estimated amount of the costs related to the capital increase in the prospectus was SR 5 Million. The reason of this difference is due to the actual final costs being lower than what was initially estimated.
b. Amount of SAR 15,000,000 which was planned to be invested in the Saudi Stock Exchange, have been shifted to investments in fixed income securities (bonds and sukuk).
c. Remaining amount of SR 2,980,986 in a current account.

Tadawul