Amana Insurance cuts accumulated losses to 45.34% of capital

Logo of Amana Cooperative Insurance Co. 

Amana Cooperative Insurance Co. cut accumulated losses to SAR 194.96 million, or 45.34% of capital, as of June 30, 2022, the company said in a statement to Tadawul.

The move came after the insurance services provider completed its capital increase by 230.7% from SAR 130 million to SAR 430 million, through a SAR 300 million rights offering.

As accumulated losses stand at less than 50% of capital, Article 150 of the Companies Law will no longer apply to the company, Amana added.

Instead, the instructions and procedures related to companies with accumulated losses of 20% or more of its capital will apply.

In May, Amana’s approved increasing capital through a SAR 300 million rights issue, during the extraordinary general meeting (EGM), Argaam earlier reported.

The rights issue was 71.91% covered, while the rump offering was 122.99% oversubscribed.

To view the auditor's report, click here