Riyadh – Mubasher: The board of Gulf General Cooperative Insurance Company (GGCI) recommended a comprehensive capital restructuring involving a capital reduction followed by a targeted increase.

The proposal seeks to reduce the company’s capital from SAR 300 million to SAR 124 million by canceling 17.60 million shares. This 58.67% reduction aims to extinguish accumulated losses and restructure the balance sheet.

Immediately following the reduction, the board proposed increasing the capital back to SAR 300 million through the issuance of 17.60 million new shares at a nominal value of SAR 10 per share.

The increase will be executed via two primary mechanisms: a SAR 126 million private placement to Bluefife Insurance Arabia and a SAR 50 million debt conversion.

The debt conversion will settle outstanding liabilities owed to major shareholders, including Saudi General Commercial Investment and Commercial Marketing Services and Agencies.

Upon completion, Bluefife Insurance Arabia will hold a 42% stake in the company, while the major shareholders involved in the debt conversion will hold approximately 10.80%.

The transaction remains subject to approvals from the Insurance Authority, the Capital Market Authority (CMA), and the extraordinary general assembly.

GIB Capital has been appointed as the financial advisor for the proposed transaction.

During the first half (H1) of 2026, the net losses of GGCI narrowed to SAR 29.49 million from SAR 52.86 million in H1-25.