Buruj Cooperative Insurance said it is planning to raise SAR 52 million ($13.8 million) by selling 5.2 million shares or 40 per cent of its capital in an initial public offering (IPO).
Buruj has been given the go-ahead by Saudi Arabia's Capital Market Authority for the IPO to take place from 3 October to 9, 2009.
Buruj said it 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."