CMA approves ACIG capital hike via share offer, preemptive rights waiver

The capital hike remains subject to shareholders approval.

The Capital Market Authority (CMA) approved Allied  Cooperative Insurance Group’s (ACIG) request to increase its capital from SAR 291 million to SAR 300 million by issuing 900,000 shares, with preemptive rights suspended, for SAR 9 million.

In a statement, the CMA said the capital increase shares will be offered only to the categories of investors stipulated in the Rules on the Offer of Securities and Continuing Obligations.

The approval is conditional on obtaining an approval from the issuer’s shareholders within six months from the date of the CMA’s sanction, as well as completing the relevant statutory procedures and requirements. The issuer will announce information on the capital increase transaction ahead of the extraordinary general meeting to vote on the resolution.

The CMA noted that shareholders voting on the capital increase with preemptive rights suspended without reviewing the disclosed information on the capital increase and offering details and carefully considering their contents may involve significant risks.

Accordingly, shareholders should review and carefully study the capital increase information and offering details before voting at the extraordinary general meeting based on full awareness and understanding. If they are unable to understand the information, they are advised to consult a licensed financial advisor.

The CMA also stressed that its approval of the issuer’s request should not be viewed as an endorsement of the investment merits of the offering or the issuer’s shares, as the approval only means that the issuer has complied with the statutory requirements under the Capital Market Law and its Implementing Regulations.

According to Argaam data, ACIG’s board of directors recommended in July 2025 increasing the company’s capital to SAR 300 million through a share issuance with preemptive rights suspended.

The capital increase is intended to meet the minimum paid-up capital requirement of SAR 300 million for insurance companies, according to the company.

In August 2025, the company received Insurance Authority (IA) approval for the capital. The authority recently approved an extension of the previously granted approval.

In January 2026, ACIG signed a subscription agreement with Diar Al-Arabia Investment Co., under which ACIG will increase its capital from SAR 291 million to SAR 300 million with preemptive rights suspended by issuing 900,000 new ordinary shares, representing 3.09% of the company’s current capital, at a nominal value of SAR 10 per share.