Saudi insurer Enaya’s shares jump 7% after receiving CMA nod to cut capital by $13m

RIYADH: Saudi Enaya Cooperative Insurance Co.’s shares climbed 6.59 percent at the end of Wednesday’s trading, following receiving approval from the Capital Market Authority to reduce its capital by SR50 million ($13 million) to SR100 million.

Saudi Enaya’s shares surged to SR19.08, compared to SR17.90 at the previous close.

Enaya is reducing its capital to amortize its accumulated losses, according to a bourse filing.

Upon the reduction, the company will increase its capital by SR130 million through a rights issue, bringing the company's capital to SR230 million, the company said earlier.