Saudi Re EGM approves 46.6% capital hike

Saudi Re shareholders approve a 46.6% capital increase to SAR 1.69 billion through bonus shares and a long-term employee incentive plan. 

Shareholders of Saudi Reinsurance Co. (Saudi Re) approved the board’s recommendation to increase the company’s capital by 46.6% from SAR 1.15 billion to SAR 1.69 billion during the extraordinary general meeting (EGM) held on Thursday, Oct. 9.

The increase will be implemented through the issuance of 51.48 million bonus shares, at four shares for every nine existing shares, in addition to allocating 2.5 million shares to the company’s long-term employee incentive plan.

Fractional shares, if any, will be compiled in one portfolio for all shareholders and will be offered at the market price. The proceeds will be distributed among entitled shareholders pro rata within 30 days maximum.

In a statement issued by Tadawul, the fluctuation limit for the company’s share has been calculated based on a price of SAR 33.44 for today, Oct. 12. Accordingly, all existing orders have been cancelled.

The Securities Depository Center Co. (Edaa) will deposit the bonus shares into shareholders’ portfolios before the start of trading on Tuesday, Oct. 14.