Al Ahlia gets SAMA's nod on 23% capital cut

Al Ahlia for Cooperative Insurance Co. has obtained the approval of the Saudi Arabian Monetary Authority (SAMA) of a 23.1 percent capital reduction to SAR 123 million, the company said in a bourse filing.

In March, the company’s board of directors recommended to reduce capital by around SAR 37 million to SAR 123 million from SAR 160 million.

Accordingly, shares will be cut to 12.3 million shares from 16 million shares (1 share for every 4.324 outstanding shares) to restructure capital in order to offset accumulated losses and support future growth.

The board of directors also recommended a capital hike of SAR 127 million through issuing rights shares.