Salama's shareholders OK capital hike via SAR 100M rights issue

Logo of Salama Cooperative Insurance Co.

Shareholders of Salama Cooperative Insurance Co. approved the board of directors' proposal to increase the company’s capital through a SAR 100 million rights issue, granting one share for every two shares held by registered shareholders.

The approval was granted during the extraordinary general meeting (EGM) held on Dec. 11, a statement to Tadawul said.

According to data available on Argaam, Salama announced in October the prospectus for rights offering.

For More IPOs

It plans to offer 10 million shares at SAR 10 each, raising capital by 50% from SAR 200 million to SAR 300 million.

The company aims to increase its capital to support its plans, enhance solvency margin, meet the minimum capital requirements, and increase the statutory deposit.

In June, the company received approval from the IA to raise its capital and recently obtained approval from the Capital Market Authority (CMA) for the capital increase process.

Meanwhile, the Saudi Exchange (Tadawul) announced the fluctuation limit for Salama’s stock will be calculated based on a price of SAR 17.40 on Dec. 12, with all outstanding orders being canceled.

The statement also noted that the rights shares for Salama will be deposited into shareholders’ portfolios on Dec. 16.