Saudi Re gets CMA nod for capital hike to SAR 891 mln via bonus issue

Saudi Re for Cooperative Reinsurance Co. obtained the approval of the Capital Market Authority (CMA) to increase its capital from SAR 810 million to SAR 891 million, the insurer said in a filing to Tadawul.

The capital hike will be carried out through 1-for-10 bonus share distribution to shareholders registered with the Security Depository Center (Edaa) at the end of the second trading day after the maturity date, which will be determined by the board of directors later.

The increase will be paid by transferring SAR 81 million from the retained earnings account to the company's capital. Consequently, the number of shares will be increased from 81 million to 89.1 million.

The extraordinary general meeting (EGM) will be held within six months from this approval date, and the company will fulfill all regulatory requirements and applicable laws.

In March 2021, the board of directors recommended a capital increase to SAR 891 million from SAR 810 million, through capitalizing SAR 81 million from retained earnings, Argaam earlier reported.