The Capital Market Authority has announced that it has approved separate applications by Chubb Arabia Cooperative Insurance Company and Saudi Reinsurance Company to increase their capital.
Chubb Arabia received the green light to increase its capital to SAR400m ($106.6m) from SAR300m by granting one bonus share for every three existing shares owned by shareholders.
The capital increase will involve transferring SAR52m from retained earnings and SAR48m from statutory reserves. The number of shares of the company will increase from 30m to 40m.
The CMA also approved Saudi Re’s request to increase its capital by issuing bonus shares.
Saudi Re will raise its issued share capital to SAR1,698.1m from SAR1,158.3m by granting four bonus shares for every nine existing shares owned by shareholders.
The capital increase will be effected by transferring SAR539.8m from retained earnings. The number of shares will increase from 115,830,000 to 169,810,000 shares, an increase of 53,980,000 shares.
Both companies say that the number of bonus shares to be issued to a shareholder would depend on the number of shares denoted in the name of the shareholder in the shareholders’ register at the Depository Centre at the end of the second trading day following the due date, which will be determined by the respective board of directors at a later time.