Logo of The Company for Cooperative Insurance Co. (Tawuniya)
Shareholders of The Company for Cooperative Insurance (Tawuniya) approved the board’s recommendation to increase capital by 20% to SAR 1.5 billion, via a bonus share distribution of 1-for-5.
The approval came during the extraordinary general meeting (EGM) held on Aug. 28.
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Capital Increase Details |
|
|
Current Capital |
SAR 1.25 bln |
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No. of Shares |
125 mln |
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Percentage of Increase |
20% |
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Method |
1 bonus share for every 5 shares held |
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New Capital |
SAR 1.5 bln |
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No. Of Shares |
150 mln |
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Reason |
Strengthening the capital base, increasing growth and expanding business portfolio over the coming years |
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Reserves to be Used |
Capitalizing SAR 250 mln from retained earnings |
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Record Date |
Aug. 28, 2023, for shareholders of record and those registered with Edaa on the second trading day following the EGM |
Share fractions, if any, will be compiled in one portfolio for all shareholders and will be offered at market price. The proceeds will be distributed pro rata in maximum 30 days.
Shareholders also approved the employee stock ownership plan (ESOP), while authorizing the board to determine the allocation price.
During the general meeting, shareholders further approved the buyback of 250,000 shares maximum to be allocated to the company's ESOP. The share repurchase will be financed from the company’s cash resources. The board will be authorized to complete the repurchase in 12 months maximum from EGM date.
Repurchased shares will be retained for 10 years maximum from the EGM date to be allocated to the ESOP and the company will later take the necessary applicable measures and procedures.
The share fluctuation limit will be based on a share price of SAR 124 as of today, Aug. 29, the Saudi Exchange (Tadawul) said in a separate statement.
Accordingly, the outstanding orders will be canceled.
The Securities Depository Center (Edaa) will deposit the additional shares into investor portfolios by Aug. 31.
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