CMA approves Enaya’s request to reduce capital to SAR 150 mln

The Capital Market Authority (CMA) approved Saudi Enaya Cooperative Insurance Company's request to reduce its capital from SAR 300 million to SAR 150 million, the market regulator said in a statement on Sunday.

Accordingly, the number of shares will be cut from 30 million to 15 million.

The CMA nod is conditional on the company’s extraordinary general meeting (EGM) approval and completion of necessary procedures.

The regulatory authority also said that the company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the EGM to enable shareholders to vote on the capital decrease.

In January, the insurer’s board of directors recommended a 50% capital cut to restructure its capital and offset accumulative losses.