CMA approves Chubb Arabia’s capital hike to SAR 300 mln through bonus shares

Logo of Chubb Arabia Cooperative Insurance Co.

The Capital Market Authority (CMA) approved Chubb Arabia Cooperative Insurance Co.’s (Chubb Arabia) request on increasing its capital from SAR 200 million to SAR 300 million through the issue of one bonus share for two shares held, the market regulator said in a statement.

Shareholders of record at the Security Depository Center (Edaa) as of the closing of the second trading day after the due date, which will be determined later by the company, are eligible for this increase.

The capital increase will be financed by transferring SAR 100 million from retained earnings. Accordingly, the company’s outstanding shares will be increased from 20 million to 30 million.

The extraordinary general assembly shall be held within six months from the CMA’s approval date, the statement added.

In March, Chubb Arabia’s board of directors recommended a 50% capital hike to SAR 300 million from SAR 200 million by capitalizing SAR 100 million from retained earnings account.