Sanad suspends capital reduction request

Sanad Cooperative Insurance Co. (Sanad) said it has withdrawn its request submitted to the Capital Market Authority regarding its capital adjustment.

The company said its decision came after the financial advisor, Saudi Kuwait Finance House, withdrew its commitment to manage the transaction, it said, adding that it will update investors on future developments.

On May 16, Sanad’s board of directors recommended cutting capital from SAR 200 million (20 million shares) to SAR 100 million (10 million shares).

The company had planned to cancel 50 percent of its outstanding shares, or 1-for-2, in line with the new corporate law.