ACIG proposes capital hike via share offering, suspends preemptive rights

Logo of Allied Cooperative Insurance Group (ACIG) 

Allied Cooperative Insurance Group's (ACIG) board of directors recommended today, July 27, a capital increase via a share offering, with the suspension of preemptive rights, according to a Tadawul statement.

The company seeks to raise SAR 9 million in proceeds from the capital top-up, the statement said, adding that the increase is to comply with the minimum paid-up capital requirement for insurance companies at SAR 300 million.

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The offering will be limited to qualified investors and institutional customers. Shareholders of record on the day of the deciding extraordinary general meeting (EGM) as well as those registered with the Securities Depository Center Co. (Edaa) will be entitled to vote on the planned transaction.

The move is subject to the approval of the Insurance Authority (IA), the Capital Market Authority (CMA), and other relevant regulatory bodies, in addition to shareholders' approval.

The company will announce any material developments in due course, including the appointment of a financial advisor on the offering and submitting the application to the authority.

ACIG was directed by IA on July 15 to submit a corrective plan within 10 business days, outlining the necessary steps for the insurer’s compliance with the minimum paid-up capital requirement for insurance companies, according to Argaam data.

On June 22, shareholders rejected the board's recommendation to increase capital via a rights issue worth SAR 209 million. This is to support business plans, enhance solvency margin, and boost investment income.

The insurer's accumulated losses reached SAR 78.60 million by the end of Q1 2025, representing 27.01% of capital.