Islamic Arab Insurance sells shares in Saudi-listed Salama after regulatory approvals

Logo of Salama Cooperative Insurance Co.

Dubai-listed Islamic Arab Insurance Co. (Salama) stated that it received regulatory approvals from Saudi Arabia’s Capital Market Authority and Saudi Central Bank to unlock its founder’s shares in Salama Cooperative Insurance Co.

The approval came on the back of negotiations that lasted for two years.

In a statement to Dubai Financial Market, the insurer said it sold 1.18 million out of 1.2 million “founder” shares for SAR 31.4 million, at an average sale price of SAR 26.52 a share. The transaction was completed after obtaining regulatory approvals and listing the post-capital reduction shares of Salama on Tadawul. 

Islamic Arab Insurance’s remaining stake in Salama is now 17,000 shares.

On Aug. 21, the Securities Depository Center (Edaa) announced implementing a securities quantity decrease on the accounts of Salama’s eligible shareholders, according to data available with Argaam.

On Aug. 16, Salama’s shareholders approved the board’s recommendation on a 60% capital decrease from SAR 250 million to SAR 100 million.