Saudi Enaya gets SAMA’s nod to raise capital to SAR 230 mln

Logo of Saudi Enaya Cooperative Insurance Co.

Saudi Enaya Cooperative Insurance Co. received on Oct. 7 the Saudi Central Bank’s (SAMA) approval to increase the company’s capital from SAR 100 million to SAR 230 million by offering a rights issue.

In a statement to Tadawul, Saudi Enaya said SAMA stipulated that the insurer should fulfill the requirements of other official authorities. SAMA’s approval is valid for six months from Oct. 7.

Saudi Enaya will provide SAMA with the relevant updates on a monthly basis, and will announce any future developments in due course.

The company’s shareholders will vote on Oct. 18 on the board’s proposal for reducing capital by 33.33% to SAR 100 million from SAR 150 million, Argaam earlier reported.

In August, the board of directors recommended a SAR 130 million rights issue to raise capital to SAR 230 million to support the company’s future plans and boost its financial solvency.