Riyadh – Mubasher: The extraordinary general meeting (EGM) of the Company for Cooperative Insurance (Tawuniya) approved the company's capital increase through 1:4 bonus shares.
The company's capital will rise 25% to SAR 1.25 billion and subsequently, the number of shares will grow to 125 million from 100 million shares.
The capital hike aims to support the company's capital base, according to a bourse filing on Wednesday.
The company pinpointed that the capital raise will be paid by transferring an amount of SAR 250 million from the retained earnings account to the company's capital.
Any fractions will be collected in one portfolio for all shareholders, sold at the market price, and distributed among the shareholders on the eligibility date in no more than 30 days of determining the eligible shares, the statement said.
The Saudi Stock Market (Tadawul) announced adding bonus shares to the company's shareholders and calculating the fluctuation exchange rate of the share at SAR 99.06 on Wednesday.
The EGM also agreed on the distribution of cash dividends for 2016, representing 50% of the nominal value of SAR 5 per share, totaling SAR 500 million, the statement said.
The eligibility will be for the shareholders of record until the close of trading on the EGM's day.
Moreover, the meeting approved the board's report for fiscal year 2016 and the firm's amended bylaws.
