Walaa Insurance recommends capital hike via SAR 775 mln rights issue

Logo of Walaa Insurance

Walaa Cooperative Insurance Co.’s board of directors recommended, on Jan. 11, 2021, increasing capital via a SAR 775 million rights issue.

The capital increase will support the company’s future expansions and enhance the solvency margin, according to a bourse statement.

Shareholders holding shares on the date of the extraordinary general assembly meeting (EGM), in which capital increase through the issuance of right issues will be discussed, and whose names appear in the register of the Issuer's Shareholders at the Depository Center at the end of the second trading day following the EGM date, will be eligible for the offering.

The capital hike is subject to approvals from Saudi Central Bank (SAMA), Capital Market Authority (CMA), and other regulatory authorities in addition to EGM.

The insurer indicated that it will later name a financial advisor and will file for the capital market authority’s (CMA) approval.

In March 2020, Walaa merged with Metlife AIG ANB Cooperative Insurance Co. and its capital was increased from SAR 528 million to SAR 646.4 million.

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