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Arabian Shield Cooperative Insurance Co.’s (Arabian Shield) board of directors recommended, on Jan. 12, 2021, a 33.33% capital hike to SAR 400 million from SAR 300 million through the issuance of bonus shares.
The capital hike aims to enhance the solvency of the company’s capital.
|
Key Figures of the Capital Hike |
|
|
Current Capital |
SAR 300 mln |
|
Number of shares |
30 mln |
|
Hike (%) |
33.33% (1 share for every 3 shares) |
|
New Capital |
SAR 400 mln |
|
New number of shares |
40 mln |
|
Record date |
Shareholders registered with the Securities Depository Center (Edaa) at the end of the second trading day after EGM, the date to be announced later |
|
Driver |
Enhance capital solvency |
|
Method |
Capitalizing SAR 80 mln from retained earnings account and SAR 20 mln from reserves |
The process is pending approval from the extraordinary general assembly and regulator, the company said in a bourse filing today, Jan. 13, 2021.
The remaining fractional shares will be grouped into one portfolio for all shareholders and sold at the market price which will be then distributed to shareholders eligible for the grant each according to their share within a period of not more than 30 days from the date of determining the shares due to each shareholder.
According to the data available in Argaam, this is the second time Arabian Shield distributed bonus shares, after it increased the capital from SAR 200 million to SAR 300 million in 2018 by granting one share for every two outstanding shares.
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