CMA approves Arabian Shield’s capital hike through SAR 100 mln bonus shares

Logo of Arabian Shield Cooperative Insurance Co.

The Capital Market Authority (CMA) approved Arabian Shield Cooperative Insurance Co.’s request to increase capital by SAR 100 million through the issue of one bonus share for every three shares held, the market regulator said in a bourse statement.

Shareholders of record at the Security Depository Center (Edaa) as of the closing of the second trading day after the due date, which will be determined later by the company, are eligible for this increase.

The capital increase will be financed by transferring SAR 100 million from the statutory reserve and retained earnings.

Accordingly, the outstanding shares will increase from 30 million to 40 million.

The extraordinary general assembly shall be held within six months from the CMA’s approval date, the statement added.

According to the data available with Argaam, the company’s 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.