CMA nods to AlJazira Takaful capital hike to SAR 660 mln via bonus shares

Logo of Aljazira Takaful Taawuni Co.

The Capital Market Authority approved the application received from AlJazira Takaful Taawuni Co. to increase its capital from SAR 550 million to SAR 660 million, the market regulator said in a statement today, Aug. 7.

This will be through the issuance of one bonus share for every five shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by AlJazira Takaful’s board.

The capital top-up will be funded by transferring SAR 110 million from the company’s share premium account.

Accordingly, the total number of shares will increase from 55 million to 66 million.

The CMA added that the company's extraordinary general meeting (EGM) should be held within six months from this approval date, provided that AlJazira Takaful satisfies all regulatory requirements and applicable laws.

In March, AlJazira Takaful’s board recommended raising capital by 20% through a one-for-five bonus share distribution, aiming to strengthen the company's financial efficiency and competitive ability in the sector, Argaam earlier reported.