Bupa Arabia gets CMA nod on 25% capital hike through bonus issue

Logo of Bupa Arabia for Cooperative Insurance Co.

The Capital Market Authority (CMA) approved an application from Bupa Arabia for Cooperative Insurance Co. to increase its capital from SAR 1.2 billion to SAR 1.5 billion, the market regulator said in a statement.

The capital will be raised through the issuance of one bonus share for every four shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by Bupa’s board.

The CMA added that such increase will be paid by transferring an amount of SAR 300 million from retained earnings account to the company's capital. Accordingly, the number of shares will rise by 30 million from 120 million to 150 million.

The regulator stated that Bupa’s extraordinary general assembly meeting (EGM) should be held within six months from this approval date, provided that the insurer shall satisfy all regulatory requirements and applicable laws.

In June, Bupa’s board of directors recommended increasing the insurer’s capital to SAR 1.5 billion from SAR 1.2 billion, through a 25% bonus issue, according to data available with Argaam.