ACIG gets IA nod on SAR 300M capital hike via share offering, preemptive rights waiver

Logo of Allied Cooperative Insurance Group's (ACIG)

Allied Cooperative Insurance Group (ACIG) received today, Aug. 27, the approval of the Insurance Authority (IA) to increase capital from SAR 291 million to SAR 300 million by issuing 900,000 ordinary shares for SAR 9 million, while suspending preemptive rights.

Moreover, Diar Al-Arabia Investment Co. will subscript for all new shares, ACIG said in a statement to Tadawul.

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The authority’s approval is valid for one year from its date, provided that the company fulfills all the requirements of other official authorities.

Any future developments will be announced if available, it noted.

According to Argaam data, ACIG’s board of directors recommended, on July 27, a capital increase via a share offering, with the suspension of preemptive rights.

The Saudi-listed insurer seeks to raise SAR 9 million in proceeds from the capital top-up. The increase is to comply with the minimum paid-up capital requirement for insurance companies at SAR 300 million.

On July 15, ACIG was directed by IA to submit a corrective plan within 10 business days, outlining the necessary steps for the insurer’s compliance with the minimum paid-up capital threshold mandated by local insurance companies.

On June 22, ACIG’s extraordinary general assembly had rejected the board recommendation to increase capital via a rights issue worth SAR 209 million.