CMA approves Saudi Enaya’s capital cut

The Capital Market Authority (CMA) has approved on May 17 Saudi Enaya Cooperative Insurance Co.’s request to reduce capital by 50 percent to SAR 100 million from SAR 200 million.

The capital cut will reduce shares to 10 million shares from 20 million shares.

The approval is subject to the company's extraordinary general assembly approving the capital reduction plan, and the completion of other necessary procedures, the CMA said in a statement.

Enaya will provide further information on the proposed method of capital reduction and the expected impact, ahead of the shareholders’ meeting, the statement said.

Earlier this month, the insurer’s board of directors recommended a 50 percent capital reduction to SAR 100 million from SAR 200 million to offset accumulated losses, Argaam previously reported.