Alinma Tokio gets regulatory greenlight for rights issue

Saudi Arabia’s market regulator, the Capital Market Authority (CMA), has approved Alinma Tokio Marine Company’s (ATMC) request to hold a SAR 250 million rights issue to increase its capital.

The capital raise will be approved in the company's upcoming extraordinary general meeting, which will be determined by the board of directors at a later date, and should be held within six months from the approval date.

In June, the insurer said its accumulated losses rose to SAR 120.9 million, or 60.5 percent of its capital, after it reported a net loss of SAR 3.6 million for May, according to a report published by Argaam.

ATMC, which has a paid-up capital of SAR 200 million, provides a variety of insurance solutions for businesses in the kingdom.

The company was launched in November 2012 and has a strong shareholder base that includes Alinma Bank, Tokio Marine & Nichido Fire Insurance Company (Japan), Sabic Industrial Investment, and others.