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Saudi Arabian Shield OKs 50% capital hike

Saudi Arabian Shield OKs 50% capital hike
Arabian Shield’s capital will increase to SAR 300 million
ARABIAN SHIELD
8070
-1.96% 17.98 -0.36

Riyadh – Mubasher: Saudi Arabia-based Arabian Shield Cooperative Insurance Company on Tuesday announced that its shareholders approved to raise capital by 50% through bonus shares during an extraordinary general meeting (EGM) held the previous day.

Arabian Shield’s capital will increase to SAR 300 million, from SAR 200 million via capitalising SAR 80 million from retained profits and SAR 20 million from statutory reserves, according to a statement to the Saudi Stock Exchange (Tadawul).

The capital hike move aims at enhancing growth ratio, implementing more expansions during the coming period, and remaining the financial solvency strong, the Saudi firm noted. 

The EGM also approved to amend articles of association to cope with the capital increase, in addition to agreeing on not distributing dividends for the full fiscal year of 2017 and endorsing the board and auditor reports.

Arabian Shield stated that it had received the approval of Saudi Arabian Monetary Authority (SAMA) to raise capital.