Saudi Enaya Cooperative Insurance Co.’s board of directors recommended a 50 percent capital reduction to SAR 100 million from SAR 200 million to offset accumulated losses, the company said in a statement on Tadawul.
The capital cut is pending approval from the general assembly and regulator.
In a separate statement, the insurer said that it has appointed Aljazira Capital as financial advisor for the proposed capital cut.
Last year, Saudi Capital Market Authority (CMA) decided that listed companies with accumulated losses above 50 percent of capital shall face liquidation, unless they find a way to mend their financial position.
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Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 200 mln |
|
Number of shares |
20 mln shares |
|
Reduction (%) |
50% (1 for every 2 shares) |
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New Capital |
SAR 100 mln |
|
New number of shares |
10 mln shares |
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Method |
Cancellation of 10 mln shares |
|
Driver |
Offsetting accumulated losses and restructuring capital |
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