SAMA approves Salama Insurance’s SAR 150m capital raise through a rights issue

The Saudi Arabian Monetary Agency (SAMA) approved Salama Cooperative insurance Company’s new capital raise request of SAR 150m through a rights issue.

The capital raise is conditional upon obtaining official parties’ approvals.

The agency indicated that its approval for this capital raise doesn’t insure its feasibility as this approval merely means the company’s adherence to SAMA’s procedures and requirements.

According to Argaam; the board of directors of Salama Cooperative insurance Company recommended, in June, a capital raise of SAR 150m through a rights issue.

SAMA rejected, in April, a request by Salama Cooperative Insurance Co. to increase capital by SAR 120 million through rights issue as the insurer did not meet the necessary requirements.