Saudi market regulator says three insurers set to request capital hikes

Saudi Arabia’s market regulator, the Capital Market Authority (CMA) said on Thursdaythat three listed insurance companies are planning to file for capital hikes.

The companies include Saudi United Cooperative Insurance Co. (Wala'a Insurance), Saudi Cooperative Insurance Co. (Salama), and Arabia Insurance Cooperative Co. (AICC).

According to Saudi’s market rules, each insurer must disclose their board’s capital hike recommendations, appoint a financial adviser to contact the CMA, as well as hire an underwriter for the process.

The companies should also submit official requests, including a prospectus for the offering in line with market laws and regulations.

Once a decision has been made, the regulator will post announcements on its website, as well as the website of the Saudi Stock Exchange (Tadawul).

Each company should also hold an extraordinary general meeting to mull over its capital raise proposal.