Saudi Enaya gets CMA approval on capital increase via SAR 130 mln rights issue

Logo of Saudi Enaya Cooperative Insurance Co.

The Capital Market Authority (CMA) approved the request received from Saudi Enaya Cooperative Insurance Co. to increase its capital through a SAR 130 million rights issue, according to a statement.

CMA also said eligibility for the rights issue shares will be to shareholders of record at the Securities Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general meeting (EGM), which will be determined by the insurer’s board of directors.

The offering price and the number of shares offered for subscription will be determined by Saudi Enaya after market closing of the same day the EGM meeting will be held. The prospectus will be issued and made available later.

The authority also noted that its approval of the prospectus should not be considered as a recommendation to participate in the offer or to invest in the insurer’s shares.

Last month, Saudi Enaya’s shareholders approved the board’s proposal to reduce capital by 33.33% to SAR 100 million from SAR 150 million, Argaam earlier reported.

In August, the board of directors recommended a SAR 130 million rights issue to raise capital to SAR 230 million to support the insurer's future plans and boost its financial solvency.

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