The Saudi Capital Market Authority has approved an application from The Company for Cooperative Insurance (Tawuniya) to increase its capital to SAR2.25bn ($599m) from SAR1.5bn, a 50% rise.
The capital increase is to be effected via a bonus issue of one share for every two existing shares. The increase will be paid by transferring SAR750m from retained earnings, the CMA said in a statement.
Tawuniya is to hold an extraordinary general meeting for shareholders to vote on the increase within six months of 9 June, the date of the CMA approval, and the company must complete the relevant regulatory procedures and requirements.
Last April, the board of directors of Tawuniya recommended the bonus issue. The move is to strengthen the capital base of the company, to support the growth and expansion of its business.