Salama shareholders approve 60% capital cut; 2-day trading halt on stock

Logo of Salama Cooperative Insurance Co.

Salama Cooperative Insurance Co.’s shareholders approved the board’s recommendation on a 60% capital decrease from SAR 250 million to SAR 100 million, during the extraordinary general meeting (EGM) held on Aug. 16, 2022, the insurer said in a bourse filing.

Shareholders also agreed to use SAR 5 million from the statutory reserve as of March 31, to cover part of the company’s accumulated losses of SAR 167.09 million, representing a capital of 66.84% as of March 31.

Meanwhile, the Saudi Exchange (Tadawul) announced that the daily fluctuation limit for Salama will be based on a share price of SAR 32.45 and the outstanding orders will be canceled.

Trading on the company’s shares will be suspended for two business days, starting today, Aug. 17 – until the Securities Depository Center Co. (Edaa) reflects  shares reduction on investors’ portfolios. The suspension on trading will end on Aug. 18.

Salama Cooperative Insurance Co.'s board of directors recommended, on March, a capital reduction by 60% to SAR 100 million from SAR 250 million, according to data available with Argaam.