Business & Money | Monday 16 February, 2015 12:30 am |

AXA COOPERATIVE INSURANCE COMPANY (AXA) signed on 26/04/1436 corresponding to 15/02/2015 the rights issue management agreement to increase its capital with the Saudi Fransi Capital Company, the Financial Advisor, Lead Manager, and Underwriter of AXA rights issue offering. The signing of the agreement was attended by representatives of receiving agents, Saudi Fransi Bank, Riyadh Bank, National Commercial Bank, Arab National Bank and Samba Financial Group.

Yasser Al Rumayyan, the CEO of Saudi Frnasi Capital, the Lead Manager and Underwriter stressed that the company is committed to cover AXA rights issue offering for the increase of its capital from 200 million Saudi Riyals to 450 million Saudi Riyals through the offering of rights issue shares.

Al Rumayyan stated that the Saudi Fransi Capital Company, in cooperation with receiving agents, has taken all arrangements necessary for the offering and the first phase will start Tuesday 28/4/1436 corresponding to 17/2/2015 and will last up to the end of Thursday 7/5/1436 corresponding to 26/2/2015 During this phase only registered shareholders may exercise their rights to subscribe (in whole or in part) for the new shares up to the number of rights deposited in their accounts after the offering EGM. The first


subscription phase coincides with the rights issue trading phase, during which registered shareholders and the public may trade in the rights. The second offering phase will start Sunday 10/5/1436, corresponding to 1/3/2015 until the close of trading on Tuesday 12/5/1436, corresponding to 3/3/2015. During this phase, all rights' holders whether
registered shareholders or purchasers of rights during the trading period may exercise their right to subscribe for the new shares. No trading of rights will be permitted during this period.

Al Rumayyan confirmed that Saudi Fransi Capital is following up with the receiving agents and all necessary arrangements have been made which will enable shareholders to subscribe via branches of receiving agents across Kingdom and through the multiple electronic tools available around the clock throughout the offering period. He indicated that the prospectus is available on the Capital Market Authority Website www.cma.org.sa, AXA website www.axa-cooperative.com and the website of the Saudi Fransi Capital, the financial advisor, lead manager and underwriter.

Mr. Paul Adamson the Managing Director of AXA Cooperative, indicated that subscription to AXA rights issue provides three choices for the shareholders registered on the date of EGM approving rights issue: Exercise their right to subscribe to all rights issue deposited in their portfolios to maintain percentage; sell their acquired rights or part thereof; or purchase additional rights, since the system allows entry of purchase or sell orders via organizational investors.
He explained that, AXA Cooperative offering, in line with rights issue mechanism, is subject to three phases as follows: The first phase will last for 10 days and coincides with the rights issue trading phase, during which registered shareholders and the public may trade in the rights. The second offering phase will start after closing of the first phase and will last for 3 days. During this phase, all rights' holders whether registered shareholders or purchasers of rights during phase

one, may exercise their rights to subscribe. During the rump offering phase, which is the last offering phase, any unsubscribed shares during phases one or two will be offered for one day to a number of institutional investors who will be invited by the lead manager after consultation with AXA, provided that such institutional investors submit offers to purchase the rump shares. The rump shares will be allocated to the institutional investors based on offered price per share until all shares have been allocated on a proportional basis among those institutional investors. Fractional entitlements to shares will be added to and treated similar to rump shares. All proceeds resulting from the sale of the rump shares and the fractional shares, if any, will be distributed to eligible persons.

Mr. Adamson mentioned that the Saudi insurance market is promising and AXA will continue to contribute to the development of the insurance market which is a vital sector of the Saudi economy. ‎ AXA Cooperative is committed to offer differentiated products and services to its customers and the company will continue to invest in its diversified range of products and services for Retail, SME and corporate customers. AXA Cooperative is also expanding its footprint including the opening of new sales outlets across major economic cities in the Kingdom of Saudi which enhances the accessibility and availability of Insurance to consumers.