This will send its shares down nearly 4 per cent.
[DATA DSY:Discovery] is offering the new shares at 90 rand each, compared with the 112.38 rand its stock was trading at on the Johannesburg Stock Exchange at 0746 GMT.
(READ MORE: S.Africa's Discovery says has little exposure to failed ABIL)
The insurer, which has operations in Europe and Asia, said its rights issue was underwritten by Rand Merchant Insurance Holdings.
(READ MORE: Discovery buys UK's PruHealth)
Diluted normalised headline earnings for the first six months to the end of December rose 17 per cent to 340.3 cents a share, the company said. Normalised headline earnings exclude certain one-off items.