Gulf Union Alahlia narrows accumulated losses to 29.63% of capital

Logo of Gulf Union Al Ahlia Cooperative Insurance Co.

Gulf Union Alahlia Cooperative Insurance Co. narrowed its accumulated losses to SAR 135.96 million, or 29.63% of capital, according to a bourse filling.

This came as a result of a 100% capital increase from SAR 229.47 million to SAR 458.95 million, through a rights issue of 22.95 million shares at SAR 10 per share, the statement added.

Thus, accumulated losses were reduced after capital hike from 57.98% of the capital, as on June 8.

Procedures and instructions applicable to Tadawul-listed companies whose accumulated losses reach 20% or more of their capital will be applied as well as all other relevant laws and instructions, if any, the company added.

Now that the company announced that accumulated losses are down to 29.63% of the company’s capital, Article 150 of the Companies Law shall not apply, as losses are now less than 50% of the capital.