CMA nods Arabia Insurance’s request to hike capital via SAR 265 mln rights issue

Saudi Arabia's Capital Market Authority (CMA) approved the request of Arabia Insurance Cooperative Co. (AICC) to increase its capital through a SAR 265 million rights issue.

The increase will be limited to shareholders registered at the Security Depository Center (Edaa) at the end of the second trading day following the extraordinary general meeting (EGM), date of which will be determined by the company’s board of directors later, the market regulator said in a statement.

The offering price and the number of shares offered for subscription will be determined by the company after the end of trading on the EGM date.

An investment decision based on the company's board of directors’ recommendation to increase capital or the CMA's approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk. Therefore, investors should carefully read the prospectus, which contains detailed information on the company, the offering and risk factors. It will provide investors the ability to evaluate the viability of investing in the offering, taking into considerations the associated risks.

If the prospectus proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to any investment decision.

The CMA's approval of the prospectus should never be considered as a recommendation to participate in the offer nor invest in the company's shares. The approval of the prospectus merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

In December 2018, AICC board of directors recommended a capital hike through a SAR 265 million rights issue, according to data compiled by Argaam.