Arabian Shield approves capital hike to SAR 400 mln via 33.3% bonus issue

10/06/2021 Argaam


Arabian Shield Cooperative Insurance Co.’s shareholders approved the board’s recommendation on a 33.3% capital hike to SAR 400 million, from SAR 300 million, through bonus share distribution at 1-for-3, according to a bourse filing.

 

This came during the company’s extraordinary general meeting (EGM), held on June 9, 2021.

 

Capital Hike Details

Current Capital

SAR 300 mln

Number of shares

 30 mln

Percentage

33.33% (1bonus share for every 3 outstanding shares)

New Capital

SAR 400 mln

New Number of Shares

40 mln

Record Date

June 9, 2021

Reason

To boost solvency

Method

Capitalization of SAR 80 million from retained earnings, and SAR 20 million from statutory reserve

 

During the meeting, shareholders also approved board’s recommendation to withhold dividends for 2020.

 

In a separate statement, Saudi Exchange (Tadawul) announced that the insurer’s daily trading fluctuation limit after its capital increase will be based on a share price of SAR 25.45 as of today, June 10, 2021.

 

Meanwhile, the outstanding orders will be cancelled.

 

The Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios before start of trading on Monday, June 14, 2021.

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