ACIG signs capital increase subscription deal with Diar Al-Arabia

Logo of Allied Cooperative Insurance Group (ACIG)

Allied Cooperative Insurance Group (ACIG) signed today, Jan. 29, a capital increase subscription agreement with Diar Al-Arabia Investment Co., noting the subscriber is not a related party, according to a statement on Tadawul.

Under the agreement, ACIG will raise its capital from SAR 291 million to SAR 300 million by waiving preemptive rights. This will be through the issuance of 900,000 new ordinary shares, representing 3.09% of its current capital, at a nominal value of SAR 10 apiece.

Diar Al-Arabia will fully subscribe to these new shares, hence acquiring a 3% stake in ACIG after the planned capital increase. The former is also committed to paying a subscription price of SAR 10 per share for a total of SAR 9 million.

The planned capital top-up is subject to several conditions, mainly obtaining a no-objection from the Insurance Authority (IA) as well as approvals from the Capital Market Authority (CMA), the Saudi Exchange (Tadawul), and ACIG’s extraordinary general assembly, alongside the subscriber’s internal approvals.

Upon completion, ACIG will finalize all the required regulatory procedures with the Ministry of Commerce, the Saudi Business Center (SBC), the CMA, Tadawul, and the Securities Depository Center (Edaa) to list the newly-issued shares and enable their trading at the earliest.

The company appointed Alistithmar Capital as financial advisor on the potential capital increase transaction.

According to Argaam data, the IA approved on Aug. 27, 2025, the company’s request to increase its capital from SAR 291 million to SAR 300 million by issuing 900,000 ordinary shares worth SAR 9 million, fully subscribed by Diar Al-Arabia, with preemptive rights suspended.

The planned move is aimed at complying with the minimum paid-up capital threshold for Saudi insurance companies of SAR 300 million, according to the company.