Riyadh – Mubasher: The shareholders of Arabian Shield Cooperative Insurance Company approved a capital increase of 33.33% or SAR 100 million by granting one share for every three existing shares, according to a bourse filing on Thursday.
During the extraordinary general meeting (EGM), the equityholders nodded for capitalising SAR 80 million from the retained earnings account and using SAR 20 million of the statutory reserves to raise the capital.
At a par value of SAR 10 per share, the new capital will stand at SAR 400 million distributed over 40 million shares, compared to SAR 300 million and 30 million shares prior to the hike.
Arabian Shield aims to strengthen its capital through this increase to boost the company’s growth and expansion plan over the upcoming years.
In a separate disclosure, the Saudi Exchange (Tadawul) announced that the fluctuation limit for Arabian Shield’s stock will be based on a share price of SAR 25.45.
Accordingly, the outstanding orders will be cancelled.
Tadawul’s Securities Depository Center (Edaa) will deposit the new shares into the investor’s portfolios by 14 June.
The Saudi Central Bank (SAMA) gave the green light for raising Arabian Shield’s capital last April.