SAMA extends non-objection on Arabia Insurance rights issue for capital hike for 6 months

Logo of Arabia Insurance Cooperative Co.

Arabia Insurance Cooperative Co. (AICC) received, on Jan. 9, an extension from the Saudi Central Bank (SAMA) regarding its non-objection to extend the approval previously granted to the company to increase capital by SAR 265 million for a period of six months from the date of the letter.

The company said in a bourse statement that the company is required to fulfill all the requirements of other regulatory authorities in addition to all relevant rules and regulations.

SAMA must also be provided by the company with a quarterly update on the measures taken for the capital increase process.

AICC will announce any future developments in this regard once available, the statement added.

According to data compiled by Argaam, the board of directors of AICC recommended in December 2018 to increase the company's capital by offering rights issue at a value of SAR 265 million, to support expansion.

In April 2019, SAMA approved AICC’s request to increase its capital to SAR 530 million through a SAR 265 million rights issue.

In a meeting held last November, the company's extraordinary general assembly meeting rejected the board of directors' recommendation to increase the company's capital by offering rights issue worth SAR 265 million.

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