Bupa Arabia calls EGM in Dec to vote on 100% capital hike

Bupa Arabia for Cooperative Insurance Co. has called an extraordinary general meeting (EGM) next month to approve raising its capital by SAR 400 million to support the company's capital base and fund its future activities.

Shareholders who own 20 or more shares will vote to approve the capital raise from SAR 400 million to SAR 800 million, thereby increasing the total number of shares from 40 million shares to 80 million shares.

The capital raise will take place through the issue of one bonus share for every share held, by utilizing SAR 400 million of the company's retained earnings as of June 30, 2015.

The agenda also includes approving necessary changes to the company’s by-laws to reflect the new capital as well as authorizing the board of directors to take necessary actions in this regard.

Eligibility for the bonus shares will be limited to shareholders who are registered as of the meeting date, Dec. 7, the company said in a filing to Saudi bourse, Tadawul.

The meeting requires the presence of shareholders with the collective ownership of at least 50 percent of the company's overall capital, as per its by-laws, Bupa Arabia added.