Riyadh – Mubasher: Malath Cooperative Insurance and Reinsurance said Wednesday that the Saudi Capital Market Authority (CMA) disapproved the company's request to hike its capital.
CMA will soon convene with Malath board of directors to explain the drivers behind this decision, the company stated in a bourse filing today.
Earlier, the board recommended raising its capital by SAR 260 million through a rights issue in order to back its sales growth and expansion capacity.
The company can file another request to raise capital, should this hike suffice to meet solvency margin requirements, along with providing an updated business plan.
