CMA approves Gulf Union Alahlia SAR 229.5 mln rights issue

Logo of Gulf Union Al Ahlia Cooperative Insurance Co.

The Capital Market Authority (CMA) gave the go-ahead for Gulf Union Alahlia Cooperative Insurance Co.'s request to increase its capital via a SAR 229.5 million rights issue, according to the market regulator’s website.

The increase will be limited to shareholders registered with the Security Depository Center Co. (Edaa) at the end of the second trading day following the extraordinary general meeting (EGM) date, which will be determined later.

The offering price and number of shares offered will be set by the company at the end of the trading day on the EGM date.

The rights issue prospectus will be posted and made available to the public later.

An investment decision based on the company's board recommendation to increase capital or the CMA's approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk. Therefore, investors should carefully read the prospectus, which contains detailed information on the company, as well as the offering and risk factors.

In October 2021, the insurer’s board recommended increasing capital, through a rights issue worth SAR 229.5 million, to support the company's future plans, enhance solvency margins and increase investment income, Argaam earlier reported.

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