CHUBB Arabia EGM to vote on 33.33% capital hike via bonus issue on Oct. 15

Logo of CHUBB Arabia Cooperative Insurance Co.

CHUBB Arabia Cooperative Insurance Co.’s shareholders will vote on the board's proposal to increase capital by 33.33%, from SAR 300 million to SAR 400 million, through a bonus issuance.

The planned capital hike will be funded by capitalizing SAR 52 million from retained earnings and SAR 48 million from the statutory reserve, granting one bonus share for every three shares held on the record date.  

In a statement to Tadawul, the company said fractional shares, if any, will be collected in one portfolio for all shareholders, to be sold at market price, with proceeds distributed to eligible shareholders pro rata within 30 days from the date of determining the entitled shares.

The company noted that the potential capital increase aligns with its strategy to strengthen the capital base in line with future expansion and growth plans. This is in addition to creating higher long-term value by investing in available opportunities.

According to Argaam’s data, the board of directors recommended in May the planned capital top-up.