Saudi Enaya Cooperative Insurance Co.’s extraordinary general assembly has approved a 50 percent capital reduction to SAR 100 million from SAR 200 million through the cancellation of 10 million shares to offset accumulated losses, the company said in a statement on Tadawul.

 

The capital cut will not have a material impact on the company’s financial obligations or shareholders’ equity, the statement added.

 

Last year, Saudi Capital Market Authority (CMA) decided that listed companies with accumulated losses above 50 percent of capital, shall face liquidation, unless they find a way to mend their financial position.

 

Key Figures of the Capital Reduction

Current Capital

SAR 200 mln

Number of shares

20 mln shares

Reduction (%)

50% (1 for every 2 shares)

New Capital

SAR 100 mln

New number of shares

10 mln shares

Method

Cancellation of 10 mln shares

Driver

Restructuring capital and offsetting accumulated losses

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