CMA green lights Salama's capital hike via SAR 100M rights issue

Logo of  Salama Cooperative Insurance Co.

The Capital Market Authority (CMA) approved Salama Cooperative Insurance Co.'s request to raise capital via a SAR 100 million rights issue, according to a statement today, Sept. 25.

Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the close of the second trading day after the extraordinary general meeting (EGM), the date for which is yet to be set by the board of directors.

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The offering price and the number of shares on offer shall be determined by the company after the close of trading on the same day the EGM is due. The rights issue prospectus will be published and made available to the public later.

The CMA's approval of the prospectus should never be considered as a recommendation to participate in the offer nor invest in the company's shares. It merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

In March, Salama’s board recommended a SAR 100 million rights issue to increase capital to SAR 300 million to meet the Insurance Authority’s (IA) minimum capital requirements within the specified period. Later in June, the insurer obtained the IA’s approval on the move, according to Argaam's data.