Amana board proposes 30% capital cut

Logo of Amana Cooperative Insurance Co.

Amana Cooperative Insurance Co. said its board of directors recommended on Aug. 10 reducing capital by 30% from SAR 430 million to SAR 301 million to restructure capital and offset SAR 129 million accumulated losses, according to a statement to Tadawul.

 

Capital Reduction Details

Current Capital

SAR 430 mln

No. of Shares

43 mln

New Capital

 SAR 301 mln

No. of Shares

43 mln

Reduction (%)

30%

Reason

Restructuring capital to offset SAR 129 million accumulated losses

Date

The end of the second trading day following the EGM

Method

Reducing capital by SAR 129 million, through lowering the nominal value of each ordinary share from SAR 10 to SAR 7, with no change to the company’s 43 million shares outstanding.
 

The company emphasized that the capital reduction will have no negative impact on its financial obligations, operations, financial performance, or regulatory status.

 

The recommendation remains subject to obtaining the approvals of the Capital Market Authority (CMA), the relevant regulatory authorities, and the extraordinary general assembly (EGM).

 

The company said it will announce the appointment of a financial advisor, the submission of the application to the CMA, and any other material developments in due course.

 

According to Argaam data, Amana recorded losses of SAR 23.2 million during H1 2026, compared to a loss of SAR 249,000 during the same period in 2025.

 

Accumulated losses at the end of H1 2026 stood at SAR 211.05 million, representing 49.08% of the company's capital.

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