The Company for Cooperative Insurance’s (Tawuniya) extraordinary general assembly meeting approved on Tuesday a board recommendation to increase the company’s capital by 25 percent to SAR 1.25 billion from SAR 1 billion, through the issue of one bonus share for every four shares held.
The insurer will capitalize SAR 250 million of retained earnings to facilitate the increase, it said in a statement to Tadawul.
Shareholders of record at the end of the extraordinary assembly meeting approving the capital hike will be eligible for the increase.
Fractional shares, if any, will be accumulated in one portfolio and will be sold at market price within 30 days of allotment.
The shareholders also approved the issue of a 50 percent cash dividend (at SAR 5 per share) for the fiscal year 2016, which will be paid on March 27.
A total board remuneration of SAR 1.8 million was also approved for FY16.
Meanwhile, Suleiman bin Sa'ad Al-Hameed was reappointed as board chairman for the next three-year term, starting from March 26, 2017.