Sanad withdraws capital reduction request

Sanad Cooperative Insurance Co. (Sanad) has withdrawn its request to the Capital Market Authority to reduce its capital, the company said in a statement to the Saudi bourse, Tadawul.

Sanad said it expects to resubmit the request upon appointing a new financial advisor and said it would update investors on future developments.

According to Argaam, on Nov. 28, 2016 the insurance company had suspended its request to reduce its capital after the financial advisor, Saudi Kuwait Finance House, withdrew from managing the capital adjustment.

On May 16, Sanad’s board of directors had recommended cutting capital from SAR 200 million (20 million shares) to SAR 100 million (10 million shares).

The company had planned to cancel 50 percent of its outstanding shares, or 1-for-2, in line with the new corporate law.