United Insurance’s BOD recommends a capital raise of SAR 140m through a rights issue

United Cooperative Assurance Company’s board of directors recommended SAR 140m capital raise through a rights issue, in a meeting held Thursday, April 24, 2014.

The capital raise is intended to enhance the solvency margin and support the company’s future expansions.

According to data available by Argaam; the insurance company has lately received the Saudi Arabian Monetary Agency’s (SAMA) preliminary approval for a proposed capital raise of SAR 140m through a rights issue.

In order to be eligible for SAMA’s final Approval; United should fulfill some requirements and submit the capital raise approval file to the CMA in addition to obtaining official bodies’ approvals as well as the extraordinary general assembly’s approval. The record date for this transaction is to be the GA date; the company said in its filing to Tadawul.