Amana Insurance plans SAR 100 mln rights issue after capital reduction
Amana Cooperative Insurance Co.’s board of directors has recommended a 56.25 percent capital reduction to SAR 140 million from its current SAR 320 million.
The board has also recommended a rights issue of SAR 100 million to take place after the capital reduction to boost its solvency margin and support future activities.
The process will not affect the company’s current obligations, the insurer said in a statement to Tadawul, adding that shareholders’ stakes and investment values will remain unchanged after the reduction.
The rights issue price and number of shares will be determined at the upcoming general assembly meeting, the insurer added.
Both the capital cut and capital increase are still pending regulatory approvals, as well as the company’s general assembly.