Saudi Arabia-based insurer Mediterranean and Gulf Insurance and Reinsurance (MEDGULF) has posted the prospectus of its 400 million Saudi Arabia riyal ($106.6 million) rights issue.

MEDGULF set the offering price at $3 a share, to increase capital from $107 million to $213.3 million, through floating 40 million shares.

The capital increase is aimed at improving solvency and enhancing the company’s financial position.

In mid-August, Saudi Capital Market Authority approved MEDGULF’s request to increase capital by $107 million through a rights issue.