CMA approves Al Sagr’s 60% capital hike

The Capital Market Authority (CMA) has approved on Tuesday Al Sagr Cooperative Insurance Co.’s request to increase capital to SAR 400 million from SAR 250 million through issuing three bonus shares for every five shares held, the market regulator said in a statement.

The capital hike will be paid by transferring SAR 119 million from the retained earnings account and SAR 31 million from the statutory reserves account to the firm’s capital, the statement said.

Company shares will therefore increase by 15 million shares to 40 million shares, it said.

Al Sagr’s extraordinary general assembly shall be held within six months from approval date and the firm is expected to meet all regulatory requirements.

Last month, the insurer’s board of directors recommended a 60 percent capital hike to SAR 400 million to support the firm’s capital base and future activities, Argaam previously reported.