Amana Insurance recommends capital hike through SAR 300 mln rights issue

Logo of Amana Cooperative Insurance Co.

Amana Cooperative Insurance Co.’s board of directors recommended a capital hike through a SAR 300 million rights issue, the company said in a bourse statement.

The capital hike aims to support future plans and boost solvency margin.

Shareholders of record on the second day after the extraordinary general assembly meeting (EGM) will be entitled to subscribe to the offering.

The process is pending approvals from the Central Bank (SAMA), the Capital Market Authority (CMA) and other related regulatory bodies, in addition to, the general assembly.

The insurer will make announcements later upon appointing a financial advisor for the offering and submitting the capital increase request to the CMA for approval, the statement added.

According to data compiled by Argaam, the company’s general assembly recently approved merger with Saudi Enaya Cooperative Insurance Co. and increasing the company’s capital from SAR 130 million to SAR 288.58 million, while Saudi Enaya shareholders rejected Amana’s merger offer.

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