Saudi Enaya gets CMA's nod on capital reduction to SAR 100 mln

Logo of Saudi Enaya Cooperative Insurance Co.

The Capital Market Authority (CMA) approved on Sept. 20 the application from Saudi Enaya Cooperative Insurance Co. (Saudi Enaya) to reduce capital from SAR 150 million to SAR 100 million.

The number of shares will be decreased to 10 million from 15 million, the market regulator said in a statement.

This decision is conditional on the company's extraordinary general meeting (EGM) approval and completion of the necessary regulatory procedures in relation to the applicable regulations.

The company will publish a disclosure document to its shareholders about the proposed method of capital reduction and the expected impact within sufficient time prior to the EGM date, to enable shareholders to vote on the capital decrease.

The regulator also noted that its approval on the capital reduction should never be deemed as an endorsement of the feasibility of the capital decrease, adding that its approval merely means that the regulatory requirements as per the Capital Market Law and its executive regulations have been met.

The company’s board of directors last month amended its recommendation to reduce capital to write off part of accumulated losses by SAR 50 million, or 33.3% of capital, bringing it down to SAR 100 million, according to data available with Argaam.