AI Summary
Logo of CHUBB Arabia Cooperative Insurance Co.
CHUBB Arabia Cooperative Insurance Co.’s shareholders will vote on the board's proposal to increase capital by 33.33%, from SAR 300 million to SAR 400 million, through a bonus issuance.
The planned capital hike will be funded by capitalizing SAR 52 million from retained earnings and SAR 48 million from the statutory reserve, granting one bonus share for every three shares held on the record date.
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Capital Increase Details |
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Current Capital |
SAR 300 mln |
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Number of Shares |
30 mln |
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Percentage of Increase |
33.33% |
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Method |
1 bonus share for every 3 shares held |
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New Capital |
SAR 400 mln |
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New Number of Shares |
40 mln |
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Reason |
To strengthen the capital base and support the company’s future activities |
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Record Date |
Shareholders of record who are registered with Edaa by the close of the second trading day following the record date |
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Reserves Used |
Capitalizing SAR 52 mln from retained earnings and SAR 48 mln from statutory reserve |
In a statement to Tadawul, the company said fractional shares, if any, will be collected in one portfolio for all shareholders, to be sold at market price, with proceeds distributed to eligible shareholders pro rata within 30 days from the date of determining the entitled shares.
The company noted that the potential capital increase aligns with its strategy to strengthen the capital base in line with future expansion and growth plans. This is in addition to creating higher long-term value by investing in available opportunities.
According to Argaam’s data, the board of directors recommended in May the planned capital top-up.
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