Buruj Cooperative Insurance announces its board recommendation on 04/06/2018 to the extraordinary general assembly to increase the company capital through bonus shares as follows:
1. Capital before increase is SR 250 Million; capital after increase will be SR 300 Million, an increase of 20%.
2. Number of shares before increase is 25 Million; number of shares after increase is 30 Million.
3. 1 new share will be granted for each 5 shares.
4. The increase will be funded by transferring SR 50 Million from the retained earnings.
5. The company objective form the capital increase is to strengthen its financial and capital position which may benefit in increasing the growth rates and expansion in the future.
6. The eligibility of bonus shares will be for the shareholders who owns shares at the close of trading on the extraordinary general assembly day and are registered in the company shareholder register with the Securities Depository Center (Tadawul) in the second day following the extraordinary general assembly meeting date.
7. In case there will be fraction shares, they will be grouped in one portfolio for all shareholders and sold at market price and the procreeds will be distributed to eligible shareholders each based on his share.
The proposed increase in capital would be initiated only once necessary approvals are received from official authorities as well as from shareholders in extraordinary general assembly meeting