Salama gets SAMA approval on capital top-up to SAR 200 mln via rights issue

Logo of Salama Cooperative Insurance Co.

Saudi Central Bank (SAMA) approved the request received from Salama Cooperative Insurance Co. to increase its capital from SAR 100 to SAR 200 million through a rights issue.

In a statement to Tadawul today, Nov. 21, the insurer said SAMA’s approval is valid for six months from its date to complete the capital raise procedures.

There are no associated costs during the current period, as Salama must fulfill all the requirements of other relevant official authorities.

The relevant financial impact, if any, will be revealed later. An announcement will also be made once the capital hike file is submitted to the Capital Market Authority (CMA) for its approval.

In August, the board of directors recommended a SAR 200 million rights issue to raise capital, Argaam earlier reported.

Earlier this month, the board decided to amend its recommendation to increase capital through a SAR 100 million rights offering.