Riyadh – Mubasher: Al-Etihad Cooperative Insurance Company has obtained the approval of the Capital Market Authority (CMA) to raise its capital via issuing bonus shares.
The Kingdom-based insurer will increase its capital to SAR 400 million from SAR 275 million by issuing bonus shares at a 5-for-11 ratio, according to a filing to the Saudi Stock Exchange (Tadawul).
The eligibility of these bonus shares shall be for the shareholders registered in the register of the Securities Depository as of the closing of the second trading day after the due date, which will be determined later by the company’s board.
Al-Etihad noted that this capital increase will be paid by transferring an amount of SAR 95.74 million from the retained earnings, and an amount of SAR 29,25 from the statutory reserve account to the company’s capital.
Accordingly, Al-Etihad’s outstanding shares will be increased by 12.5 million shares, reaching 40 million shares instead of 27.5 million shares.
