Malath gets CMA nod for SAR 380 mln capital hike

Malath Cooperative Insurance Co. has received approval from the Capital Market Authority (CMA) on Monday to raise its capital through a SAR 380 million rights issue, Saudi Arabia’s market regulator said in statement to Tadawul.

Only shareholders of record on the second trading day after the extraordinary general assembly meeting will be eligible to subscribe to these shares. The EGM date will be determined by the company’s board later.

The offer price and number of shares will be set by Malath by the close of trading on the day of EGM. The issuance prospectus will also be issued later, the CMA added.

Last December, Malath’s board of directors approved to increase the company’s capital through a SAR 380 million rights issue, instead of the previously proposed SAR 260 million to reach the required solvency margin.

The planned capital raise is aimed to boost the company’s solvency margin and support future activities.