Wataniya Insurance Company announces the developments regarding the use of proceeds from the rights issue which was held from 9/8/2016 G to 23/08/2016 G as follows:
1. Actual use of the proceeds from the rights issue as of 30/09/2016 compared to what was disclosed in the rights issue prospectus:
a. Total proceeds from the capital increase amounted to SR 100,000,000
b. Total direct and indirect expenses related to the capital increase amounted to SR 6,454,760.
c. Net proceeds from the capital increase amounted to SR 93,545,240
d. An amount of SR10,000,000 has been added to the statutory deposit consequent to the capital increase.
e. An amount of SR 488,218 has been spent on expenses related to information systems.
f. Remaining proceeds of SR 83,057,023 have been invested in short term time deposits of SR 83,000,000 and SR 57,023 is currently held in the company current account.
2. Deviations in actual use of the proceeds compared to the disclosure made in the rights issue prospectus
a. A difference of SR 545,240 in the expenses related to the capital increase. The estimate of expenses related to the capital in the prospectus was SR 7,000,000. The difference is due to actual final expenses lower than what were initially estimated.
b. The estimated amount of investments in the rights issue prospectus was SR 70,000,000 while the actual amount is SR 83,000,000. The difference is due to the following reasons:
i. An amount of SR 545,240 in the short term investments is from the savings in expenses related to capital increase as mentioned in point 2A of this announcement.
ii. The expenditure on the development of the existing information systems is under process and will be done as and when the necessary milestones are achieved.
iii. The amount of SR 3 million kept for restructuring will be utilized as and when the requirement arises.
c. The investments in Sukook and shares as disclosed in the prospectus was SR 22 million. This amount has been invested currently in the time deposits, pending a final decision by the investment committee.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.