CMA approves Gulf General’s capital hike through rights issue

 Logo of Gulf General Cooperative Insurance Co.

The Capital Market Authority (CMA) approved Gulf General Cooperative Insurance Co.’s request to increase capital by SAR 300 million through a rights issue.
 

The increase will be limited to the shareholders who are registered in the shareholders registry at the Securities Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general assembly meeting (EGM), the regulator said in a statement.

The offering price and the number of shares offered for subscription will be determined by the Saudi-listed firm after market closing of the same day the EGM is to be held.

The rights issue prospectus will be posted and made available to the public later, the statement added.

According to the data available with Argaam, the company announced in April 2020 the recommendation by the board of directors to increase the company's capital by offering rights issue worth SAR 300 million, with the aim to support the firm’s expansion plans.

In July 2019, Gulf General obtained no objection from Saudi Central Bank (SAMA) to increase the capital from SAR 200 million to SAR 500 million by offering rights issue.