CHUBB Arabia secures CMA nod on capital top-up via bonus issue

Logo of CHUBB Arabia Cooperative Insurance Co. 

The Capital Market Authority (CMA) approved CHUBB Arabia Cooperative Insurance Co.’s request to raise capital from SAR 300 million to SAR 400 million via a 1:3 bonus issue.

In a statement today, Sept. 8, the market regulator said bonus shares will be eligible to shareholders registered with the Securities Depository Center Co. (Edaa) by the end of the second trading day following the record date, which will be determined later by the company's board of directors.

The planned capital hike will be funded by capitalizing SAR 52 million from the company’s retained earnings account and SAR 48 million from the statutory reserve. Consequently, the number of the company's outstanding shares will rise from 30 million to 40 million.

The deciding extraordinary general meeting (EGM) shall be held within six months from this approval date and the company shall satisfy all regulatory requirements and applicable laws.

According to Argaam data, CHUBB Arabia’s board of directors recommended, on May 21, a 33.33% capital increase from SAR 300 million to SAR 400 million through a 1-for-3 bonus share distribution. It proposed capitalizing SAR 52 million from retained earnings and SAR 48 million from the statutory reserve.