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Arabia Insurance’s EGM nods to 100% capital hike via rights issue

Arabia Insurance’s EGM nods to 100% capital hike via rights issue
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Riyadh – Mubasher: The extraordinary general meeting (EGM) of Arabia Insurance Cooperative Company greenlighted the board’s recommendation to increase the capital by 100% to SAR 530 million from SAR 265 million.

The capital hike will be carried out by issuing and listing 26.50 million rights shares at a nominal price of SAR 10 per share, according to a recent bourse disclosure.

Following the transaction, the new capital will be distributed over 53 million shares. 

Meanwhile, the capital raise comes in line with the company’s growth plans to expand its business and maintain the financial solvency requirements imposed by the Saudi Central Bank (SAMA).

Last May, the Capital Market Authority (CMA) passed Arabia Insurance’s capital raise.

In the first nine months (9M-22) of 2022, the Tadawul-listed firm logged net profits before Zakat worth SAR 5.95 million, up 0.61% year-on-year (YoY) from SAR 5.92 million.

The earnings per share (EPS) jumped to SAR 0.11 in 9M-22 from SAR 0.03 in 9M-21.

In addition, the accumulated losses amounted to SAR 46.54 million as of 30 September 2022, accounting for 17.60% of the SAR 265 million capital.