Riyadh – Mubasher: The board of Bupa Arabia for Cooperative Insurance Company has recommended increasing the capital by 25% through bonus shares.

The Saudi listed firm intends to issue one bonus share for every four owned shares, according to a bourse disclosure on Monday.

Subject to related approvals, Bupa Arabia will increase its capital to SAR 1.50 billion from SAR 1.20 billion by utilising SAR 300 million from the retained income reserves.

Accordingly, the new capital will be distributed over 150 million shares, compared to 120 million shares prior to the raise.

The capital increase aims to support the insurer’s future growth plans and strengthen its capital base.

During the first quarter (Q1) of 2022, Bupa Arabia generated SAR 137.95 million in net profit before Zakat, down 21.35% from SAR 175.41 million in Q1-21.