UCA board plans SAR 300M rights issue to raise capital

Logo of United Cooperative Assurance Co. (UCA)

The board of United Cooperative Assurance Co. recommended increasing capital to SAR 700 million by way of a SAR 300 million rights offering.

In a statement to Tadawul, UCA said the planned hike aims to support the company’s future plans, expansions and financial solvency margin.

Shareholders on the date of the extraordinary general meeting (EGM) are eligible along with those registered with Edaa by the close of the second trading day following the meeting.

The capital increase is subject to approval by the Insurance Authority, Capital Market Authority (CMA) and other regulatory bodies, in addition to the EGM.

The company will later announce the financial advisor once the capital increase application is filed with the CMA.

The company’s shareholders recently gave the go-ahead for a planned merger with Saudi Enaya Cooperative Insurance Co., Argaam reported.