Buruj Cooperative Insurance Co. to raise up to SAR 52 million in initial public offering
Buruj Cooperative Insurance Co. has announced that it plans to raise SAR 52 million by selling 5.2 million shares or 40 per cent of its capital in an initial public offering (IPO) that seeks to capitalise on the significant growth and the long-term potential of the insurance sector in Saudi Arabia. Buruj has been granted approval by Saudi Arabia's Capital Market Authority for the IPO to take place from October 3 to 9, 2009.
Buruj will offer its shares at a price of SAR 10 each and has appointed Al Rajhi Bank, Banque Saudi Fransi and Samba as the receiving banks for the IPO.
Samer Kanj, General Manager, Buruj Cooperative Insurance Co., said, "It is a highly opportune time to launch the company because of the favourable business conditions, which include a positive economic outlook in Saudi, low current insurance penetration rates and a new insurance regulatory framework that was introduced in 2004. Buruj Cooperative Insurance Co. will add value to Saudi Arabia's insurance sector as we are committed to delivering premium products that satisfy the security needs of individuals and businesses, helping them manage their everyday risks, recover from unpredicted events, and reach their goals and aspirations."