CMA nods to Tawuniya's capital hike to SAR 1.5 bln via bonus shares

Logo of The Company for Cooperative Insurance (Tawuniya)

The Capital Market Authority approved the application received from The Company for Cooperative Insurance (Tawuniya) to increase its capital from SAR 1.25 billion to SAR 1.5 billion, the market regulator said in a statement today, July 19. 

This will be through the issuance of one bonus share for every five shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by Tawuniya’s board. 

The capital top-up will be funded by transferring SAR 250 million from the company’s retained earnings.

Accordingly, the total number of shares will increase from 125 million to 150 million. 

The CMA added that the company's extraordinary general meeting (EGM) should be held within six months from this approval date, provided that Tawuniya satisfies all regulatory requirements and applicable laws. 

In May, Tawuniya’s board recommended raising capital by 20% through a one-for-five bonus share distribution, aiming to strengthen the company's capital base, Argaam earlier reported.