Saudi Indian Company for Cooperative Insurance’s (Wafa Insurance) board of directors has recommended a 40.5 percent capital reduction to SAR 122 million, to restructure the company’s capital and offset accumulated losses, the insurer said in a statement on Tadawul.
The capital cut is conditional upon obtaining regulatory approvals.
Shareholders’ ownership ratios will remain unchanged after the capital cut, Wafa Insurance added.
Earlier this year, the Saudi market regulator, the Capital Market Authority (CMA), said Tadawul-listed companies that have accumulated losses exceeding 50 percent of their capital will be forced into liquidation under a new corporate law, unless they fix their finances.
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Capital reduction details |
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Current Capital |
SAR 205 mln |
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Number of shares |
20.5 mln shares |
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Capital cut percent |
40.5% (1.22 share for every 3 shares) |
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New capital |
SAR 122 mln |
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New number of shares |
12.5 mln shares |
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Method of capital cut |
Cancelling 8.3 mln shares |
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Reasons |
Restructure the company’s capital and offset accumulated losses |
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