CMA approves Walaa’s capital hike via rights issue

Logo of Walaa Cooperative Insurance Co. 

The Capital Market Authority (CMA) approved Walaa Cooperative Insurance Co.'s request to increase its capital via a SAR 467.5 million rights issue, according to a statement today, Aug. 5.

The approval came as the company's application fulfilled the regulatory requirements and obligations related to corporates filing for a capital top-up, the regulator said.

For more news and details on Mutual Funds

The rights issue prospectus will be published and made available to the public later.

Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general meeting (EGM), the date for which is yet to be set by Walaa’s board of directors.

The offering price and the number of shares on offer shall be determined by the company after the close of trading on the same day the EGM is due.

An investment decision based on the company's board recommendation to increase its 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. Thus, providing 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 CMA's approval of the prospectus merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.​