Amana Insurance approves capital cut by 45.8%; Tadawul suspends trading for 2 days

24/05/2021 Argaam

Logo of Amana Insurance


Amana Cooperative Insurance Co.’s shareholders approved a 45.8% capital cut to SAR 130 million from SAR 240 million by cancelling 11 million shares, during the extraordinary general assembly meeting (EGM) held on May 23, 2021, the insurer said in a statement on Tadawul.

 

Details of Capital Reduction

Current capital

SAR 240 mln

Number of shares

24 mln

Decrease percentage

45.83%

Capital after reduction

SAR 130 mln

Number of shares after reduction

13 mln

Method

Cancelling 11 mln shares (one share for every 2.18 shares)

Reason

To restructure capital and partly offset its SAR 110 mln accumulated losses as of Sept. 30, 2020

Date of Sale

End of the second trading day after the EGM, which approves the decrease

 

Shareholders also approved to amend Article 8 of the company’s Articles of Association related to capital and Article 3 related to objectives.

 

In a separate statement, the Saudi Stock Exchange (Tadawul) announced Amana Insurance’s daily trading fluctuation limit after its capital reduction will be based on a share price of SAR 63.

 

All outstanding orders will be cancelled. The shares will be suspended for two business days starting today, May 24, 2021.

 

The Securities Depository Center (Edaa) will reduce shares in investors' portfolios to reflect the capital cut. Trading suspension will be lifted by the close of trading tomorrow, May 25, the statement said.

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