Riyadh – Mubasher: The extraordinary general meeting (EGM) of Saudi Indian Company for Cooperative Insurance (Wafa Insurance) approved the board’s recommendation to decrease the capital by 40.49%.

The company’s capital will be cut to SAR 122 million from SAR 205 million; thus, reducing the number of shares from 20.5 million shares to 12.2 million.

The main reason behind the capital decrease is to restructure for the sake of offsetting the company’s accumulated losses and to support its future growth, according to a bourse filing.

The EGM has also agreed on the board's and auditors’ reports for fiscal year 2016, in addition to amending the company’s bylaws to be in line with the New Companies Law.

In April, the company had announced that its accumulated losses had reached SAR 83.3 million, representing 40.6% of the capital and reasoned that increase to higher net incurred insurance claims.

The Saudi Stock Exchange (Tadawul) announced on Thursday that the fluctuation limits for Wafa Insurance will be based on a share price of SAR 22.26.

Moreover, the stock will be suspended for two business days, starting from 15 June until the Securities Depository Center Company (Edaa) reflects the shares reduction on investors’ portfolios on 18 June.