Saudi Enaya board amends capital cut proposal to 33.3%, SAR 130 mln rights issue

Logo of Saudi Enaya Cooperative Insurance Co.

Saudi Enaya Cooperative Insurance Co.'s board of directors approved today, Aug. 18, the amendment of its recommendation to reduce capital to write off part of accumulated losses by SAR 50 million (or 33.3% of capital), thus bringing capital down to SAR 100 million.

The company also stated that its recommendation includes a subsequent capital increase through SAR 130 million rights issue.

Thus, post-increase capital will amount to SAR 230 million, which will support the company's future plans and enhance its solvency margin.

Saudi Enaya also stated that eligibility for the rights issue will be to shareholders who own the shares on the day of the EGM that decides the capital increase and whose names appear in the company’s shareholders register at the Depository Center at the end of the second trading day following the EGM date that will be determined later.

The recommendation to increase the company's capital is subject to the approval of the related regulatory authorities and the approval of the company's EGM. An announcement will be made later when submitting a request for a reduction and increase of the company's capital to the Capital Market Authority for approval.

In a separate disclosure to Tadawul, Saudi Enaya said it appointed Al Wasatah Al Maliah Co. (Wasatah Capital) as financial advisor for the capital decrease and rights issue. The company's board of directors recommended, on May 19, a capital increase through SAR 300 million rights issue, according to Argaam's data.

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