AICC gets CMA's nod on capital increase via rights issue

Logo of Arabia Insurance Cooperative Co.

Arabia Insurance Cooperative Co. (AICC) obtained the approval of the Capital Market Authority (CMA) to increase its capital through a rights issue worth SAR 265 million, according to a bourse filing.

CMA also said eligibility for the rights issue shares will be to shareholders of record at the Securities Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general assembly meeting, which will be determined by the company's board of directors.

The offering price and the number of shares offered for subscription will be determined by the company after market closing of the same day in which the EGM meeting is to be held.

The authority also noted that its approval of the prospectus should not be considered as a recommendation to participate in the offer or to invest in the company's shares.

The company's board of directors recommended in December 2018 to increase the company's capital by offering SAR 265 million rights issue to support expansion, Argaam reported.

In November 2021, the company's extraordinary general assembly meeting rejected the board of directors' recommendation to increase the company's capital by offering rights issue worth SAR 265 million.

AICC received, on Jan. 9, an extension from the Saudi Central Bank (SAMA) regarding its non-objection to extend the approval previously granted to the company to increase capital by SAR 265 million for six months from the date of the letter.

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