Shareholders of Sabb Takaful have voted to increase the company's capital by issuing rights issue shares with a total value of SAR300 million ($80 million).

'Our shareholders have approved the rights issue which can now proceed in accordance with Capital Market Authority (CMA) regulations,” said Dr Yazid Abdulrahman Al-Ohaly, chairman of Sabb Takaful.

The subscription period for the rights issue will begin on August 15 and end on 26.

The rights issue offering is being made to Sabb Takaful shareholders registered with Tadawul at the close of trading on August 8, 2009.

The rights issue price is SAR12.50 per share, and the number of shares on offer is 24 million shares. Shares not subscribed for, if any, will be available for eligible shareholders who subscribe for their rights in full. The prices of the additional shares subscribed for is SAR12.50, SAR19, SAR26, and SAR33.

Aldukheil Financial Group is the Financial Advisor and Lead Manager for the issue.-TradeArabia News Service