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Right Issue Prospectus Gulf General Cooperative Insurance Company

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Right Issue Prospectus Gulf General Cooperative Insurance Company The Offering of Rights under this Prospectus depends on the shareholders’ approval to increase the capital in accordance with the recommendation of the Board of Directors and the Company’s obtaining of the regulatory approvals. An invitation for the Extraordinary General Meeting of the Company has been published to approve the issuance of the Rights on 21/10/1442H (corresponding to 02/06/2021G). The shareholders should know that if the shareholders’ approval is not obtained for the offering of the Rights issue, the issue of the rights will automatically stop. At that time, this Prospectus will be considered void and shareholders will be notified accordingly. Right Issue Prospectus Gulf General Cooperative Insurance Company Gulf General Cooperative Insurance Company is a Saudi joint stock company incorporated under the Cabinet Resolution No. (365) dated 03/12/1429H (corresponding to 01/12/2008G) and Royal Decree No. (M/85) on 05/12/1429H (corresponding to 03/12/2008G), and the Ministerial Decision announcing the establishment of the Company No. (12/Q) on 17/01/1431H (corresponding to 03/01/2010G), and under the Commercial Registration No. (4030196620) Dated 09/02/1431H (corresponding to January 24/01/ 2010G). Offering of thirty million (30,000,000) ordinary shares at an Offering Price of ten (10) Saudi Riyals per share through rights issue with a total value of three hundred million (300,000,000) Saudi Riyals, representing an increase in the Company's capital by (150%), bringing the Company’s capital to five hundred million (500,000,000) Saudi Riyals. Trading period: starts on **/**/1442H (corresponding to **/**/2021G) and ends on **/**/1442H (corresponding to **/**/2021G) Subscription period: starts from on **/**/1442H (corresponding to **/**/2021G) and ends on **/**/1442H (corresponding to **/**/2021G) Gulf General Cooperative Insurance Company (hereinafter referred to as “GGI” or “the Company” or “the Issuer”) was incorporated 4. Subscription will be available electronically through the investment portfolio in the trading platforms and applications as a joint stock company under the Cabinet Resolution No. (365) dated 03/12/1429H (corresponding to 01/12/2008G) and Royal through which sale and purchase orders are entered, in addition to subscription through other channels and means Decree No. (M/85) on 05/12/1429H (corresponding to 03/12/2008G), and the Ministerial Decision announcing the available to the agent. establishment of the Company No. (12/Q) on 17/01/1431H (corresponding to 03/01/2010G), and under the Commercial In the event that any Shares remain unsubscribed for during the Subscription Period (the “Rump Shares”), they will be Registration No. (4030196620) Dated 09/02/1431H (corresponding to January 24/01/ 2010G). The Company’s headquarters is offered to a number of institutional investors (“Institutional Investors”) (“Rump Offering”). Such Institutional Investors shall located in Jeddah, at Madinah Road - Al Ghaithi Plaza - PO Box 1866, Jeddah 21441, Kingdom of Saudi Arabia. The Company submit offers to purchase the Rump Shares. Receipt of such offers will start at 10:00 AM on *** **/**/1442H (corresponding obtained a permit from the Central Bank of Saudi Arabia (formerly the Saudi Arabian Monetary Agency) (“SAMA”) under permit to **/**/2021G), until the following day at 05:00 PM on *** **/**/1442H (corresponding to **/**/2021G) (“Rump Offering No. (TMN/26/20103) dated 20/03/1431H (corresponding to 06/03/2010G) to conduct insurance activity in the general insurance Period”). The remaining shares will be allocated to the Institutional Investors in the order of the offered price with the highest and health insurance branches. The Company’s capital upon incorporation was two hundred million (200,000,000) Saudi Riyals, first until all of the Rump Shares have been allocated (providing that the price shall not fell below the Offering Price). Rump divided into twenty million (20,000,000) ordinary shares with a nominal value of 10 Saudi Riyals per share fully paid up (referred Shares shall be proportionally divided among Institutional Investors that tendered offers at the same price. Fractional Shares to individually as “current share” and collectively as “current shares”). As on the date of this Prospectus, the substantial shareholders will be added to the Rump Shares and treated in the same manner. All proceeds resulting from the sale of the Rump Shares in the Company (those who own 5% or more of the Company’s shares) are the Saudi General Insurance Company, which owns shall be distributed to the Company and any proceeds in excess (if any) without calculating any fees or deductions three million (3,000,000) shares, representing 15.0%, Gulf Specialized Investments Holding Company, which owns three million (exceeding the Offering Price) for those who are entitled to it, each according to what he is entitled to, no later than (3,000,000) shares, representing 15.0%, and Al-Insaf International Real Estate Development Company, which owns one million **/**/1442H (corresponding to **/**/2021G. Note that the investor who did not subscribe or sell his rights, and the owners (1,000,000) shares, representing 5.0% of the Company's shares before the Offering. of fractional shares, may not get any compensation if the sale is made in the Rump Offering Period at the Offering Price. The Board of Directors recommended in its meeting convened on 24/08/1440H (corresponding to 29/04/2019G) to increase the In the event that the investment institutions have not subscribed to all the remaining shares and fractions of shares, the Company’s Share Capital by three hundred million Saudi Riyals (SAR 300,000,000), after obtaining the necessary regulatory remaining shares shall be allocated to the Underwriters who will purchase them at the Offering Price (please refer to Section approvals and approval of the Extraordinary General Meeting. The Company obtained the approval of the Saudi Central Bank (13) “Information Related to the Shares and the Terms and Conditions of the Offering”). The final allocation process will be (“SAMA”) to increase its capital in accordance with the letter No. 89/35440, dated 29/10/1440H (corresponding to 02/07/2019G). announced no later than **/**/1442H (corresponding to **/**/2021G), (“allotment date”). (please refer to Section (13) On **/**/1442H (corresponding to **/**/2021G) the Extraordinary General Assembly of the Company approved the increase of “Information Related to the Shares and the Terms and Conditions of the Offering”). the Company›s Capital through a Rights Issue. The Offering consists of thirty million (30,000,000) new Ordinary Shares (“Rights” After completion of the subscription process, the Company's Share Capital will become five hundred million (500,000,000) or “New Shares”) at a par value of ten Saudi Riyals (SAR 10) per share (“Offering Price”) to increase the Company›s Capital from Saudi Riyals, divided into fifty million (50,000,000) ordinary shares. The net proceeds from the subscription will be used two hundred million Saudi Riyals (SAR 200,000,000) to five hundred million Saudi Riyals (SAR 500,000,000), raising the mainly to support the expansion of the Company's activity in order to comply with the requirements of financial solvency, Company’s shares from twenty million ordinary shares to (50,000,000) ordinary shares. as this will be done through the use of proceeds in investments and financial deposits in addition to increasing the statutory The Offering will comprise tradable securities (referred to collectively as the “Rights” and each a “Right”) to shareholders registered deposit by (10%) of the total proceeds and updating the headquarters offices and electronic systems. (Please refer to Section in the Company’s Shareholders Register as at the close of trading on the date of the Extraordinary General Assembly approving the (7) “Use of Offering Proceeds and Future Projects”). Capital increase (the “Eligibility Date”) and those registered in the Company’s Shareholders Register at the Depository Center at the The Company has only one class of shares and no shareholder will have any preferential voting Rights. The New Shares will end of the second trading day following the day of the Extraordinary General Meeting approving the capital increase on be fully paid and rank identically with the existing shares. Each share entitles its holder to one vote and each shareholder **/**/1442H (corresponding to **/**/2021G). Each Shareholder is referred to as (“Registered Shareholder”) and collectively as (“Shareholder”) has the right to attend and vote at the General Assembly Meetings (“General Assembly Meeting”) of the Company whether ordinary or extraordinary and vote in them. The New Shares will be entitled to receive their portion of (“Registered Shareholders”), provided that such Rights are deposited in the Registered Shareholders’ accounts after convening the any dividends, if any, declared by the Company after their issuance date. Extraordinary General Assembly, taking into account the settlement procedures at (1.5) rights for each (1) share of the Company’s The Company listed all of its shares totaling to twenty million (20,000,000) shares on the Saudi Stock Exchange (Tadawul) shares, and each Right gives its holder the right to subscribe to one new share at the Offering Price. at a par value of ten (10) Saudi Riyals through an IPO on 24/02/1431H (corresponding to (08/02/2010G). The Founding Registered shareholders and other investors (referred to as "New Investors"), who may trade Rights and
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