Riyadh – Mubasher: Malath Cooperative Insurance Company's extraordinary general meeting (EGM) approved the board’s recommendation to raise the capital by 316.7% through right issue shares at a value of SAR 380 million.
The capital soared to SAR 500 million from SAR 120 million, and the shares rose to 50 million from 12 million, according to a statement on Sunday to the Saudi Stock Exchange (Tadawul).
After the capital hike the increasing ratio will amount to 3.17 shares for each share for shareholders.
Eligibility will be for shareholders registered in the group’s register at the depository centre at the end of the second trading day following the date of the shareholders’ meeting on 2 October.
Capital rise aims to achieve the required solvency for the company, and finance its future activities.
Capital hike will be implemented through issue of 38 million ordinary shares at SAR 10 per share.
The company’s shareholders approved to amend the eights item of its articles of associations subject to capital rising.
Malath noted in a separate statement that the fluctuation rate of its stock based on a price of SAR 12.35.
The Saudi Securities Depository Center (Edaa) will add the securities to the shareholders’ accounts for right issue subscription on 3 October.
By 12:51 pm KSA time, Malath’s stock levelled up 9.96% to SAR 13.58.
