Logo of Saudi Enaya Cooperative Insurance Co.
Saudi Enaya Cooperative Insurance Co.’s shareholders approved the board’s recommendation to reduce capital by 33.33% from SAR 150 million to SAR 100 million, during the extraordinary general meeting (EGM) held on Oct. 18, according to a statement on Tadawul.
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Capital Decrease Details |
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Current Capital |
SAR 150 mln |
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Number of Shares |
15 mln |
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Capital Decrease Percentage |
33.33% (through cancelling one share for every three shares) |
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Capital Post-Decrease |
SAR 100 mln |
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Shares Post-Decrease |
10 mln |
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Reason |
Restructuring the company’s capital to offset SAR 50 million of accumulated losses |
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Method |
Cancelling five mln shares |
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Date |
Oct. 18, 2022, the end of the second trading day following the EGM, during which the capital cut was approved |
The company stated that there is no material impact from capital reduction on its financial liabilities.
In a separate statement, the Saudi Exchange (Tadawul) announced that the stock’s fluctuation limit will be based on a share price of SAR 25.20 and the outstanding orders will be cancelled.
Additionally, a trading halt will be placed on the stock as per the listing rules for two business days starting today, Oct. 19.
The Securities Depository Center Co. (Edaa) will apply the capital reduction to shareholders’ portfolios, the statement noted.
In August, the board of directors recommended a SAR 130 million rights issue to raise capital to SAR 230 million to support the company’s future plans and boost its financial solvency, Argaam earlier reported.
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