RIYADH: Salama Cooperative Insurance Co.’s board has proposed raising the company’s capital by SR200 million ($53 million) in a bid to support growth plans.
The insurer seeks to increase its capital from SR100 million to SR300 million, after its shareholders approved a 60 percent capital cut, according to a bourse filing.
Salama said the capital increase will be conducted through a rights issue offering, for which it hasn’t appointed a financial advisor yet.
The transaction is subject to approval from the Saudi Central Bank, the Capital Market Authority, and the company’s extraordinary general assembly.
To offset accumulated losses, the Saudi-listed firm recently announced a capital reduction from SR250 million to SR100 million by canceling 15 million shares.
