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SHUAA Capital closes $75 million IGI issue

The capital increase transaction, which closed on Tuesday, August 16, 2005, was effected through a private placement of 814,882 shares, representing 44.9 per cent of the capital. The transaction was subscribed to by various institutional and individual investors from the GCC region.

“IGI has a very high caliber management team that has delivered consistent performance and carved out a solid footing in its markets. This has attracted strong investor interest, and led to a successful transaction,” said Khaled Sifri, Managing Director for the Investment Banking Group at SHUAA Capital.

SHUAA Capital acted as financial advisor to IGI as well as the placement agent. IGI is involved in the reinsurance underwriting business mainly for the oil and gas, construction, marine and aviation industries. It is differentiated from other reinsurance companies in the region in that it conducts business mainly on a facultative basis where reinsurance risks are examined and evaluated on individual basis rather than on a wholesale basis.

IGI was recently granted a BBB rating by Standard & Poors, which will further enhance its underwriting capacity. “The combination of this capital increase and our recently granted BBB rating from S&P will significantly expand our market reach and our capacity. With the help of SHUAA Capital's Corporate Finance team we were able to attract an excellent group of investors that support our vision and expansion plans, said Wasef Jabsheh, IGI's Chairman and Chief Executive Officer.

IGI intends to apply to list its shares on the Dubai International Financial Exchange (DIFX) in the near future. “We believe that IGI has very strong growth prospects that will be reflected in market pricing when the company achieves its listing,” said Makram Kubeisy, Head of Corporate Finance Advisory at SHUAA Capital, which prepared and structured the capital increase transaction.

The IGI private placement transaction was managed, structured and executed by the Corporate Finance Advisory team, which is part of the Investment Banking Group at SHUAA Capital.