Saudi: Al-Rajhi Takaful receives regulatory nod to increase capital

Source: Middle East Insurance Review | Jul 2023

Al Rajhi Takaful has received approval from the Capital Market Authority (CMA) to increase its capital to SAR1bn ($266.6m) from SAR400m through a 1.5 bonus share distribution for every share held, according to a statement issued by the CMA last month.

The capital increase will be achieved by releasing SAR600m from the company’s retained income, thereby increasing the shares from 40m to 100m.

In line with regulatory requirements, Al Rajhi Takaful should conduct an extraordinary general meeting within six months from the approval date and should comply with all regulatory requirements and applicable laws, the CMA said.

In May 2023, Al Rajhi Takaful’s board of directors recommended a 150% capital increase to SAR1bn through granting 1.5 share for each owned share. The board noted that the goal is to support the capital base which contributes to the company’s strategic expansion plans. M

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